The management of sustainable and dependable water resources in a semi-arid coastal watershed in South Texas, such as the Choke Canyon Reservoir Watershed (CCRW), is deemed critical because of complex relationships among ecosystems, social development, human health, and economic progress. To retrieve key hydrological information constrained by a limited budget, a set of hydrological monitoring stations in support of investigation of drought and flood impacts in the CCRW were identified by a grey integer programming (GIP) approach under uncertainty. The area of interest is divided into eight hundred cells in GIS for the 15,000-square-kilometer watershed area. Each cell size is 4-by-4 kilometer. The cells are assigned weights that could quantify monitoring values in terms of soil permeability, precipitation rate, evaporation rate, predicted soil moisture, evapotranspiration rate, and the normalized difference vegetation index (NDVI). RADARSAT and LANDSAT satellite images are acquired in support of determination for part of the weighted values, such as soil moisture and vegetation index, in the hydrological cycle. The weights are aggregated as coefficient matrices in a GIP model that help identify the most suitable locations. Fifteen cells are chosen out of eight hundred candidates and are ranked consecutively. Eventually, only five sites were selected after a site investigation based on site accessibility and practical uses of the selected sites. It may help collect a vital database at strategic locations, including wind speed, wind direction, soil moisture, ambient temperature, soil temperature, and relative humidity periodically for drought and flood management in the future.