Sort of off the main topic but what is the "state geological society" doing in this scenario? Is it in fact the state government whose geological/geotechnical section has asked for this - and why are they involved if it isn't state land or state project? A geological society sort of implies, to me, like the Canadian Geotechical Society, etc. - they have no 'power' to recommend etc. - at least as far as I can see. In other words, are they putting their nose into something that isn't their business.
As far as groundwater rise or fall, that, really, is a matter of the stratigraphy that you have at site. Normally, development means a lot of paved over space - hence the probability that the groudwater would fall, not rise. Points are well taken that in some conditions as with irrigation and watering for landscaping, this might cause a rise - but it seems to me that for the water to rise in slopes - does that mean that your development is at the top of slopes (as in Washington - Seattle or Vancouver area)??
Anyway the points by others are well considered - I am just interested in how a "geological society" has become involved.