Section 404 of the Clean Water Act is a regulatory program that requires individuals and organizations to obtain permits for developments causing unavoidable impacts to wetlands and/or streams. Permittees must first avoid impacts and then minimize and compensate for unavoidable impacts by restoring, enhancing, creating, and/or preserving wetlands and streams. Use of a watershed approach is now required to improve the site selection and design of mitigation projects. Literature review and interviews were conducted to identify ways to incorporate the watershed approach into compensatory mitigation in Georgia. Recommendations were presented as case studies and a score sheet for evaluating proposed projects.