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A recent study by geologists at Western Michigan University has concluded that the 
stability of a building site on a hill or bluff has a direct relationship to the presence of 
groundwater and/or lacustrine clay within the soil. Should either or both be present, you 
probably should not be building there. In order to make sure that is not the case, you 
should get a professional evalution of the property by an engineering geologist or a civil 
engineer. Costs can run from a simple on-site inspection at $500 to as much as $10,000 
for a thorough evalution. The other thing you can do is search well records. For those 
interested in a low cost method of determining if there is ground water perched on their 
property, search county well records. While time consuming, and I quote, if your hill is 
65 feet high and well records show your neighbor's well hit water at 30-35 feet, its a 
safe bet your property has ground water at that level as well.
Offered by John.