Dryland salinisation is degrading land and water resources of Lower Eyre Peninsula. It decreases land production capabilities, water quality, and the general aesthetics of the environment. Interdepartmental investigations into the occurrence and rehabilitation of salt-affected lands are ongoing throughout the agriculturally important areas of the State, and in particular, Eyre Peninsula. Installation of bores and the monitoring of watertable levels on a local scale are being undertaken to assess rates of groundwater rise. Impacts on water levels due to altered farming practices are of considerable interest to researchers and landowners for addressing the issue of dryland salinity. This report summarises the installation of specifically drilled observation wells to be used in the initial stages of a salinised land rehabilitation trial. The trial is being conducted within the Toolillie Gully sub-catchment where significant revegetation with native plants is planned. This area is presently an uncontrolled catchment which feeds directly into the ultimate surface water storage facility for reticulated supplies on Eyre Peninsula, namely, the Tod River reservoir.