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Georgia, like many states, faces an increase in water demand while having only limited water resources. Georgia also has the pressing problems of explosive population growth, severe drought, and saltwater intrusion along its coastline. In addition, several of its river basins are shared by Florida and Alabama, who have their own water demands and concerns. This article explores these issues and the actions the Georgia Legislature and state departments have taken to find a balance between developing and preserving water resources. Some of the steps include developing a statewide Water Conservation Plan and imposing a moratorium on issuing new groundwater irrigation permits in the lower Flint River Basin and new surface water permits in the entire basin. The state also instituted the Flint River Drought Protection Act (FRDPA) of 2000, which provides financial incentives for farmers to voluntarily suspend irrigation in severe drought years. Also, Georgia has entered into "compacts" to negotiate with Alabama and Florida and develop equitable formulas to share the water in its river basins. Although several steps have been taken, there have been difficulties along the way. Because of problems with the irrigation auctions (a component of the FRDPA), the Georgia Environmental Protection Division was sued (the suit was later dismissed), and negotiations between Georgia and Florida reached an impasse in October 2003. Yet, despite the obstacles, water is being conserved in Georgia, and the water conservation planning process continues. Includes 17 references, table, figures. See more