A water storage and management system takes water from a water source, such as captured run-off, and through a piping system, directs a flow of the water into an aquifer for storage and future utilization. Using moisture detectors, the system ascertains the water content of different layers or zones of the aquifer and reports this information to a digital processor. The digital processor may utilize this information to issue instructions to one or more control valves to direct the flow of the water into portions of the aquifer which have additional storage capacity. The digital processor may also instruct a submersible pump to withdraw from the aquifer as desired. This system is utilized in a method of banking groundwater from a remove location. Such groundwater storage may result in receipt of groundwater recharge credits.