POLICY ISSUES ASSOCIATED WITH THE MANAGEMENT OF A COASTAL GROUNDWATER AQUIFER AND SOLL SALINITY ARE EXAMINED FOR AN IRRIGATION AREA IN NORTHWEST MEXICO. THE PRIMARY POLICY ISSUES ARE THE INTERTEMPORAL RATE OF USE OF THE GROUNDWATER STOCK, THE ALLOCATION OF WATER BETWEEN IRRIGATION AND LEACHING, AND THE SELECTION OF CROPS. A MANAGEMENT MODEL, CAST IN A DYNAMIC PROGRAMMING FORMAT, INDICATES THAT THE AQUIFER SHOULD BE MINED AT A RAPID RATE NEAR THE BEGINNING OF THE PLANNING HORIZON, GRADUALLY DECLINE THROUGH TIME, AND CONVERGE TO SAFE YIELD AFTER TWENTY-NINE YEARS. FURTHER, A LARGER PERCENTAGE OF TOTAL WATER USE SHOULD BE ALLOCATED TO LEACHING TO MAINTAIN SOIL SALINITY TO LOWER LEVELS.