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The development of water supplies for consumptive use requires changes in the hydrology of rivers, lakes, impoundments, and groundwater systems. These modifications can have an adverse effect on wetland and aquatic resources. Significant regulatory programs have been established that require minimization of these environmental impacts and mandate the protection of environmental values. Utility managers who seek to develop and permit new projects must balance these mandates with their traditional responsibility to supply water. This paper is an executive summary of a handbook developed to expedite the decision making and permitting process for water resource projects. It demonstrates and quantifies the ancillary environmental benefits of water resource projects. The handbook also defines procedures and examples of the use of wetlands mitigation banking. Water supply managers will be able to use the information to help plan and implement successful projects.