A recent scout well drilled into the confined Dilwyn Formation (formerly Knight Group) at Mundulla intersected only low permeability sediments unsuitable for development. However, this does not rule out the possibility that a suitable aquifer will be found elsewhere beneath the township. Water quality (1 300 mg/1) is only marginally fresher than that found above in the shallower unconfined aquifer (1 400 to 2 200 mg/1). Further investigation may progress along a number of lines depending on the aquifer utilized. A supply may be pumped from the unconfined aquifer southeast, west or north of the township (to avoid local contamination from septic tank drainage) or possibly from the confined aquifer beneath the township providing good aquifer sands are located. It is recommended that a cost-benefit evaluation be made of these alternatives before further scout or production well drilling is carried out.