Nonstructural Water Resources Development Act of 1985

Nonstructural Water Resources Development Act of 1985 - Amends the Water Resources Development Act of 1974 to require that equal consideration be given to structural, nonstructural, and primarily nonstructural water resource alternatives.

Requires that non-Federal participation for recommended nonstructural or primarily nonstructural alternatives be equal to the non-Federal participation which would have been required for the most cost effective structural alternative. Prohibits the non-Federal share of the costs of flood damage prevention and water resource protection from exceeding 20 percent. Requires any Federal agency to recommend a nonstructural or a primarily nonstructural alternative if the agency concludes that the benefits of such alternative do not exceed its costs and the non-Federal participant agrees to increase its share by a specified amount.

Directs the Secretary of the Army, acting through the Chief of Engineers, to: (1) evaluate ongoing studies of water resources problems; (2) select such studies with the highest potential for nonstructural solutions; and (3) ensure that nonstructural alternatives are emphasized in the planning of such studies. Requires the Secretary, acting through the Chief of Engineers, to expedite such planning and to submit to Congress an annual report on the progress made in identifying and implementing nonstructural and primarily nonstructural water resources projects.

Applies the 20 percent limit on the non-Federal share of the costs of flood damage prevention and water resource protection projects to such projects authorized on and after October 1, 1981.