The applicability and usefulness of Geostatistics (kriging) as a tool for o
ptimum selection of sites for monitoring groundwater levels has been demons
trated through a case study. The criterion used is the estimation of error
variance. Groundwater level data (pre-monsoon 1994) obtained from 32 observ
ation wells of Upper Kongal basin, Nalgonda District, A.P. (India) has been
stochastically analyzed. The spatial distribution of water levels and its
associated error variance is computed and the locations having maximum erro
r variance are selected as additional sites for augmenting the existing obs
ervational well network.