A novel methodology for suitable site selection for groundwater development based on river capture, pumping cost and groundwater potential has been proposed for better groundwater utilization. River capture and cost map have been generated from a calibrated groundwater model, simulated with forecasted hydrological time series data. The groundwater potential has been calculated with weighted overlay analysis. These three variables have been used to classify the model domain into five zones of groundwater development by K-Means clustering. The area with lower river capture, low cost of pumping and high groundwater potential is found to be the best location for groundwater extraction. The methodology has been applied to the lower Ain river basin, France.