Increasing human population, changing lifestyles and environmental considerations have resulted in increased utilization of groundwater resources worldwide. Thus, in turn, has led to the decline of groundwater levels in some countries and Ghana is no exception to this problem. To augment the availability of groundwater resources for various uses, numerous techniques have been developed in many part of the world, one of which is the construction of underground dams. The successful construction and utilization of underground dams, however, depends very much on the physical and hydrogeological conditions at the dam sites. Ghana is underlain by Precambrian crystalline igneous and metamorphic rocks ; and Paleozoic consolidated sedimentary formations. There are further subdivided and described locally as the Birimian, Dahomeyan, Buem, Togo Series, Tarkwaian, Granites, Voltain, Coastal Block Fault, Coastal Plain and Quaternary Alluvium. The review of these and the pre-requisite conditions necessary for the construction of underground dams indicate that underground dams could be constructed and utilized in some parts of Ghana, especially where the overburden is shallow, in the Dahomeyan granites and in the recent formations consisting of alluvial and coastal sands and gravels. This paper is part of a continuing research programme being carried out by the authors.