For local governmental units to participate effectively in the provision of public recreation facilities at multipurpose reservoir projects, private recreational investment must supplement existing local fiscal resources. Recreational residential development offers one important means of achieving this end, but reservoir shoreline development tends to be unevenly distributed in the Southeast. Before residential investment prospects can be incorporated into water resource project planning, factors influencing variation in reservoir shoreline development should be identified and evaluated wherever possible. Analysis of data from 74 multipurpose reservoir projects in the Southeast indicates that the residential use of water projects is primarily a function of various aspects related to the size of a project, the number and affluence of people living nearby (within 25 miles), and the visual attractiveness of the project. Considering the extent of taxable private shoreline investment as a criterion, local provision of public recreational facilities seems to be feasible for larger reservoirs located within relatively populous and affluent jurisdictions. (Author)