During the oil crisis of 1973, we suddenly became aware that fossil fuel resources are limited and will be exhausted soon if new alternatives are not put into use immediately. Conservation measures and extensive research on new sources of energy has eased the demand on fossil fuels, especially crude oil. Geothermal energy as an alternative; source had its share in this devel opment and electricity producing capacity increased from 700 to 4700 MWe during 1970 to 1985. Geothermal reservoir engineering emerged as an impor tant field in the assessment of geothermal sources. During the 25 years of its development, several areas were identified that needed further at tention for the correct description and interpretation of reservoir be havior. This fact as accepted by all operators is vital for the steady and continuous operation of power plants. During this NATO ASI, a detailed review of theory and field case his tories on geothermal reservoir engineering was presented. In understanding .the reservoir, conceptual models, natural state models, well bore measure ments, transient and tracer testing provide data which are indispensable. They are powerful tools in understanding reservoir behavior provided we know how to interpret them. During lectures the theory and practical applications of these interpretive methods were discussed.