Results of an aquifer test carried out at APCEL Pty. Ltd. in mid January, 1976 and a review of previous drilling and hydrogeological investigations in the Millicent - Snuggery area have shown the Gambier Limestone to consist of an upper phreatic sub-aquifer and lower confined sub-aquifer separated by a low permeability confining bed. Most production bores in the area derive their supply from both sub-aquifers while the observation bores monitor the upper subaquifer only. Consequently aquifer parameters calculated from previous tests were over-estimated while anticipated drawdown and hence recommended pump setting depths were too shallow. Although the hydrogeology of the area is better understood, the rapid decline of water levels occurring in the production bores cannot be explained. Explanation is hindered by lack of knowledge of the pumping and water level history of each production bore and water level fluctuations in the confined sub-aquifer. Necessary action includes drilling of observation bores to the sub-aquifer, providing access for water level probes in production bores and metering of them to determine their weekly output. Monitoring of the shallow observation network in the Snuggery area since 1970 has shown a stable cone of depression developed in the phreatic surface beneath the APCEL and Cellulose paper mills. It is suspected that a similar stable cone of depression has developed in the potentiometric surface of the confined sub-aquifer. To resolve this situation, a drilling programme should be implemented and at least 9-12 months of data accumulated. Although no precise parameters could be calculated from results of the recent aquifer test, an order of magnitude was obtained. The inhomogeneity of the Gambier Limestone in the Snuggery area probably eliminates the need for further testing to obtain sub-aquifer and confining bed parameters as these can be reliably estimated.Geophysical logging of all bores should be attempted to assist definition of the sub-aquifer-confining bed boundaries.