The overall goal of this two-year interdisciplinary research project is the development and evaluation of a proposed methodology for effective management of the Texas coastal Zone. This interim report summarizes the work concluded during the first year of the study. The first objective of the past year was the development of a systematic approach by which various proposed coastal zone management policies could be evaluated in terms of their economic and environmental impact. The second purpose was the establishment of operating criteria by which economic and environmental impact could be assessed.