The Bureau of Economic Geology is a subcontractor to D. B. Stephens & Associates on a project designed to identify suitable parts of the state for storing excess surface water in groundwater systems. The population of Texas is expected to double in the next 50 years, and water demand is projected to increase by 18 percent. With the decline in development of new surface-water reservoirs because of adverse impacts on the environment, groundwater managers are turning to artificial recharge of groundwater, using? excess surface water to meet water needs during times of drought. In this project suitable sites were evaluated for artificially recharging groundwater using spreading basins adjacent to streams. A statewide screening was conducted that included water quality, regional water demand, aquifer characteristics (recharge area, depth to groundwater), distance from surface water, and slope. A total of 48 counties passed the statewide screening. Within six regions of the state, more detailed analysis permitted evaluation of water resources, water storage and conveyance systems, and infiltration rate, area, and time period for infiltration. A successful site should be high in soil permeability and located in topographically flat areas, close to a stream. The results of this study provide important information to water managers in the state on the potential for groundwater banking.