Some 1% of the earth's crust has heat flux significantly above the global average. Concentrated in areas of the order of 10km2 associated with volcanic zones, such energy can be tapped for local power projects commonly generating 10MW km2. Such systems are of great value to those areas of developing countries, and elsewhere, lucky enough to possess this resource, but could never be seen as a ‘solution’ to the world energy problem. Long-term effects of field development are unknown, for instance development of the Wairakei field in New Zealand has only been active for 25 years. The vital choices for management of such fields are in how quickly energy is required, and how much. These choices will dertermine whether the resource must be ‘mined’ or whether it is possible to recharge the system and maintain a long-term supply. If the former, geothermal energy must be regarded as a ‘finite’ resource, for it is non-renewable, unless fluid extracted is replaced. Mining, resource definition, field development and theoretical background to these aspects are discussed and illustrated using a model of a typical development.