The economy of Hampton Roads has been, and remains, heavily dependent upon the activities of the Department of Defense (DoD). As a result, changes in the level of those activities and their associated expenditures can produce large socio-economic impacts on the Hampton Roads area. This investigation will explore the relationship between variations in defense expenditures in Hampton Roads and variations in regional economic activity. The report will conclude with recommendations as to how the region may best prepare to meet future changes in local defense activities. Special emphasis will be given to the impacts created by changes in the number of military personnel living and working in the region.