Abstract
This study compares the benefits and disadvantages of two options, i.e. dam construction and a water transfer tunnel between two existing dams, with a particular focus on their effects on the natural environment and local communities and their respective economic efficiencies. It is concluded that significant advantages exist for the construction of a water transfer tunnel between two dams in Korea. This option would secure water resources in a manner that minimizes the economic, environmental and social effects of water resource development and which maximizes the utility of existing water resources.