Abstract: Department of Defense (DoD) military services own and maintain a portfolio of dams, dikes, and levees including over 800 assets with a total replacement value of over $2 Billion. The Inspector General has previously found that the DoD requires an inspection policy for dams, to prevent failures. The Office of the Secretary of Defense (OSD) directed the U.S. Army Engineer Research and Development Center, Construction Engineering Laboratory (ERDC-CERL), to create an inspection method and integrate that method with the Enterprise Sustainment Management System, with aims to provide OSD a consistent description of all DoD real property and facilitate calculation of the Facility Condition Index (FCI) for each asset. This report builds upon ERDC-CERL TR-18-9 to propose a method for both inventory and inspection rating for DoD dams, levees, and dikes. A new real property classification system for DoD water control structures is proposed. To better fulfil the OSD requirement for consistent condition and FCI reporting, it is proposed that DoD reevaluate the replacement values and sustainment cost factors for its water retaining structures. A draft guide for linear segmentation for levees is proposed. Future work will allow CERL to develop an Initial Operating Capability for a module within the Enterprise Sustainment Management System to support the OSD requirement.