The primary goal of this report is to develop a framework for valuing ground water that is applicable to all offices within U.S. EPA (EPA hereafter) that consider the value of ground water resources when conducting Regulatory Impact Analyses (RIAs). The precedent for this 1 effort was set with the development of 'A Guide for Cost-Effectiveness and Cost-Benefit Analysis of State and Local Ground Water Protection Programs' by EPA's Office of Water (United States Environmental Protection Agency, 1993). The guide provides a concise discussion of the processes for accomplishing these types of analyses, but does not provide specificity regarding the estimation of ground water values. It is the intent of this report to begin to develop the framework for a comparable guide for assessing the economic value of ground water. We use the term value in a generic sense such that the values associated with reductions in ground water quantity or quality may be considered losses and, conversely, increases are deemed benefits. The objectives of this report are to: (1) Provide a conceptual framework for identifying and measuring the economic value of ground water. (2) Consider the extent to which the benefits of ground water protection, as suggested by the valuation framework, have been accounted for in previous RIAs; and (3) Provide guidelines for utilizing the valuation framework to consistently value ground water across EPA offices and policy issues within offices.

Cover title. "October 1995." "EPA 230-B-95-003." Includes bibliographical references.