The paper deals with the problem of assessing the benefits from various types of flood protection. The first chapter contains a discussion of the nature of the benefits from flood protection and relates the various types of benefits to five different measures for coping with flood losses. The second chapter develops a theory of land use as it relates to the structure of rents. This theoretical framework is used in Chapter 3 to develop the proper measure of benefits from 'land enhancement.' The final chapter deals with the effects of alternative programs of insurance on the cost of risk-bearing associated with flooding.