Non-point source water pollution of local watersheds can result from various sources but is
tied most closely to runoff from impervious surfaces associated with development
activities such as roadways, parking lots and large commercial structures. This research
investigates the value of ambient water quality as measured by data from twenty-two
monitoring stations located throughout a local watershed in Maryland; the St. Mary's River
watershed. A hedonic property value model is used to investigate the marginal implicit
values of the following water quality variables: total suspended solids and dissolved
inorganic nitrogen. The econometric results indicate the marginal implicit prices
associated with a one milligram per liter change in total suspended solids and dissolved
inorganic nitrogen, are $−1086 and $−17,642, respectively.