This document discusses key issues related to water availability, quality, and costs for algae cultivation. It summarizes trends in groundwater salinity across the US and how the optimal salinity level for growing algae balances production versus water costs. Operating ponds at higher salinities in arid regions of the Southwest uses less water than in wetter Southeast regions. While elevated salinities reduce algae growth rates, they decrease water needs by reducing blowdown and disposal costs. Further research is still needed on regulating freshwater use, disposing of saline wastewater, and understanding impacts of water chemistry on algae productivity.