A conceptual engineering approach for low cost management of production water from coal bed methane recovery wells is presented. The approach is applicable for production water that contains no toxic contaminants, but contains total dissolved solids (TDS) at concentrations that present potential receiving stream impacts. The management approach consists of production water containment during critical stream low flow periods, followed by controlled release into receiving streams during periods of high flows. Environmentally acceptable receiving stream TDS concentrations, and methods for estimating a design low flow regime, and allowable discharge rates and associated storage requirements are assessed.