The Metropolitan Water District of Southern California (MWD) and the U.S. Department of Energy (DOE) co-sponsored a project to evaluate the potential for a Modular High Temperature Gas-Cooled Reactor (MHTGR) to meet the growing needs for water and power in Southern California. The concept employs an MHTGR coupled to a high temperature turbine-steam system with an 11″ Hg turbine backpressure. Turbine exhaust heat at 165°F is delivered to a Low-Temperature Horizontal Tube Multi-Effect Distillation (LT-MED) process. A plant consisting of four 350 MWt reactor modules, two turbine-steam trains and eight LT-MED modules is capable of producing 466 MWe of net power and 106 million gallons per day of fresh water. Based on private financing for power generation and public financing of water generation, a plant starting up by the turn of the century would produce power at about $0.05/kWh and water at about $0.50/m3.