When searching for a place to set up shelter, you will need to keep several things in mind. The first will be water supply. It is advisable that you select a location with an adequate water supply that is close to, but not immediately next to, your home base. This is due to one; the obvious necessity of water and two, the plethora of food that can be obtained near water sources such as plant life, fish, and other animals obtaining said water. The reason to not have the water supply immediately next to your home base is twofold; you do not want to keep said animals from coming to water, and insects as well as animals find their homes at many water sources. This is not beneficial. Due to this, and the risk of disease, moving water is always preferable to still. Methods of water purification will be discussed at a later time.
Until then; Plan Well. Plan Wisely.