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The Rural Towns–Liquid Assets (RT–LA) project was established with the aim of integrating salinity, waterlogging and flooding control with development of new water supplies in wheatbelt towns, and where possible, finding ways of putting the excess water to commercial use. Following the identification of effective integrated water management strategies, these have been applied to the 15 Shires participating in DAFWA’s RT–LA project. This report summarises the outcomes from all scientific investigations undertaken for Merredin. In addition it presents the water management options, a preliminary analysis of those options and the priority recommended ones. Due to the reduction in rainfall since 2000, Merredin groundwater levels have shown a declining trend below the townsite as a result of reduced infiltration and recharge.