A bill to authorize the Secretary of the Interior to engage in water resource projects in the U.S. Territories and Commonwealths, and for other purposes.

Authorizes the Secretary of the Interior to provide water resource research, planning, and management assistance in the U.S. territories and commonwealths, and areas outside the national domain. Sets forth areas of consideration for the Secretary in implementing this Act. Prohibits the Secretary from committing to activities or projects: (1) in excess of a specified cost; or (2) which require substantial personnel resources until the 60th calendar day after notifying the appropriate congressional committees.

Requires the Secretary to report on activities under this Act by December 31, 1987, and annually thereafter. Authorizes appropriations as necessary for FY 1987, 1988, and 1989.