Subsurface dams are basically groundwater conservation structures and are effective to provide sustainable groundwater by arresting subsurface flow. A groundwater dam is constructed across stream which retards the natural groundwater flow of the system and stores water below ground surface to meet the demands during the period of scarcity. Groundwater is commonly available resources and the only permanent and safe source of water. The development of the groundwater basin and the concept of storing water in subsurface is an attractive alternate solution to the water shortage problems in arid areas. The capital cost for this kind of structure is relatively low.Shedi soil available in lateritic formation is investigated for considering, it as an alternative material for SSB. Composite soil is prepared by addition of clay to shedi soil at different proportions. Large scale hydraulic conductivity tests are carried out to determine optimal clay content for preparing composite soil. Large scale Hydraulic conductivity tests are also done by varying the thickness of SSB’s. The suitability of different materials such as clay with river sand need to be investigated as an alternative material.