The "mining" of groundwater by excessive withdrawals has caused a new regulation in eastern North Carolina mandating reductions in groundwater withdrawal. This regulation sets new ground by not only capping withdrawals, but actually mandating dramatic reductions up to 75% of capacity and explicitly addressing the benefits of aquifer storage and recovery (ASR) by allowing the storage filling step to credit against a utility's groundwater withdrawals. This paper presents a case study of a utility that is pursuing conjunctive use of groundwater and surface water supplies and possible future ASR application for increased capacity, reliability, and cost-effectiveness. Conjunctive use of different quality supplies requires considerations of water quality issues such as blending, corrosion control, and disinfection byproduct control. These issues are evaluated and presented along with capacity, reliability, and cost-effectiveness findings. Includes figures.