Future disposal of dredged material in the Puget Sound estuary of the State of Washington is of major interest to Federal, state, and local governmental regulatory agencies, as well as those responsible for maintaining existing waterways and harbors. Elevated levels of toxic chemicals exist in bottom sediments of all the urban bays, with tumors and other biological abnormalities found in bottom fish associated with these water bodies. Public awareness of this situation has been heightened by extensive media coverage of recent government investigations of environmental conditions in Puget Sound. These investigations and public concerns have led to three ongoing regional planning efforts, all of which deal with Puget Sound water quality and marine bottom sediments. This paper reports on the Puget Sound Dredged Disposal Analysis (PSDDA), a 3-year joint Federal-state study primarily focusing on unconfined, open-water disposal of material dredged from Federal and non-Federal navigation projects. Study objectives include (a) selection of unconfined, open-water disposal sites; (b) development of sampling, testing, and test interpretation procedures to be used in evaluating the suitability of dredged material for disposal in Puget Sound waters; and (c) formulation of disposal site management plans. Preliminary findings for each of these objectives are discussed for central Puget Sound, which includes the ports of Seattle, Tacoma, and Everett.