A desktop study was undertaken to review the current status of the groundwater system in the Barossa Valley Prescribed Water Area. With the current rates of groundwater withdrawal, water table levels are remaining generally stable, except in the Lyndoch Valley region and the Tanunda to Angaston area, where levels are declining annually. Groundwater salinities are also stable overall. There is a need to review the system's water budget and the interaction between the Highlands recharge area and the Valley Floor, given the demand for new development in the Highlands. Other issues to be addressed include; the unused water allocation, the impact of the importation of water, an increase in groundwater allocation licence transfers, the leaking wells, the practice of aquifer storage and recovery (ASR), and a review of the observation well network.