Mines and Energy South Australia (MESA) was commissioned by MFP Australia to undertake an investigation into the feasibility of establishing an Aquifer Storage and Recovery (ASR) scheme at The Levels site. The programme is being carried out in two stages by MESA, in conjunction with the Centre for Groundwater Studies (CGS). The project proposes that the best receiving aquifer, based on ground water quality, transmissivity, current local extraction and storage capacity, is to be the recipient of harvested stormwater runoff from adjacent housing and wetlands. The other aquifer may be utilised for the storage of treated sewage effluent. It is envisaged that the water stored during winter will be recovered and used by households for non-contact purposes and also for irrigation of gardens, lawns and ovals throughout the village. This report documents the successful completion of Stage 1(a) and (b) in which production/injection and observation wells were drilled into the confined Tertiary aquifers beneath the northern Adelaide Plains; step-drawdown pumping tests were carried out to determine preliminary aquifer transmissivity and well equation; chemical analyses of the ambient ground water quality were undertaken; and the aquifer material analysed for its rock chemistry properties. From the analyses carried out, the deeper of the two targeted aquifers has been determined to be the aquifer which best meets the project objectives. Under Stage 1(b) of the programme, drilling of three observation wells and one production/injection well into the deeper Tertiary aquifer has been completed.