A set of local water resource problems were studied: upstream runoff control and downstream flooding, temporary sewage treatment plants, and choice of a regional waste water handling system. The study focus was on a preliminary test of four hypotheses about the process of design and decision-making. These hypotheses include: That for some situations a combination of privately and publicly constructed and financed conservation measures may be a more efficient choice than public actions alone and that the specific availability of funds and/or financing procedures may distort or bias the choice between alternative water conservation systems. These hypotheses and their application to the case studies are discussed using verbal cost/benefit arguments to show why the hypotheses might be accepted.