Lakeshore erosion, characterized as a reduction in distance between property improvements and the lake, will eventually threaten improvements. An option price model suggests that erosion-prone lakeshore property will be discounted and this discount may be measured by hedonic price analysis. We discuss the conditions that permit benefit estimation from the hedonic regression. Analysis of mail survey returns estimates willingness to pay for erosion protection, as measured by the number of years remaining until property improvements are endangered. ¿ American Geophysical Union 1993