This report presents the results of an investigation of the flooding problems along the Illinois and Michigan Canal within La Salle and Grundy Counties, Illinois. The canal is owned and managed by the Illinois Department of Conservation (IDOC). In a letter dated August 19, 1983, the IDOC requested that the Section 205 study authority be enacted to examine the flooding problem. An initial appraisal was completed in 1988 and a reconnaissance study was initiated in February 1988. The purpose of the reconnaissance study is to define the flooding problem, identify potential solutions, and determine whether there is a Federal interest in a flood damage reduction plan, based on a preliminary appraisal of costs, benefits, and environmental impacts. The reconnaissance study phase is also the appropriate time to assess the level of interest and support in the potential solution by non-Federal interests. (sdw).