An examination was conducted of alternative responses to the water supply situation in four cities in southeastern Virginia. Cost/benefit analyses were performed for the provision of projected levels of use and for reductions in those levels of use achieved with the use of quotas, price increases, and water saving devices. An important element of these analyses was the consideration of the costs incurred as a result of waste water treatment with different levels of water use. The levels of the principal types of water use were estimated for each city. This provided a basis for the projection of water demand curves necessary for estimating the value of water. Optimal schedules for the development of additional water sources were derived through the examination of water demand, relative to the costs of operating and expanding water supply and waste water. treatment facilities. / Ph. D.