The alternative sources of water available for the consumers in the project area coveringTalpc. Habaraduwa. Koggala EPZ and coastal belt. Ahangama, Dikkumbura and Irnaduwaarc ground water. or surface water Irorn Gin ganga, Nilwala ganga or the proposeduupounding reservoir at Baddcgcdara.The first choice on the basis of water quality and treatment costs was ground water, hut aftera test drilling program this source was found to he inadequate.The proposed impounding reservoir at Baddegcdara is located near to the project area andtechnical Icasibility studies revealed that this is a feasible proposal.Posiuvc and negative environmental impacts of the proposed project were identified usingan environmental interaction matrix and it was attempted to evaluate the overall impactLlsing the Battelle's Environmental Evaluation System. Weights for the different impactswen: assigned depending on the relative importance of the impacts. Value functions forSOIllC of the impacts were developedThe topography of the area docs not lend itself 10 the fashioning of a deep lake. According10 past studies. it has been showed that the ideal wild life lake is shallow with gently slopingshore». This type of situation could he expected from the proposed impoundment. Thesenatural qualities or the habitat could be further augmented by various managementtechniques such as the restriction or the area or impoundment and catchment.