I've heard in the past of dowsers or other "psychic archaeologists" being used by institutions that didn't want to pay for the more expensive scientific archaeology required to protect cultural patrimony and heritage. But I've never heard of dowsers being brought in because archaeologists weren't considered sufficient enough.
Until now. Check out these links. (h/t Boing Boing)
A Grave Matter
I could try to summarize the story, but really I think one needs to read it to really get all the forces at play. Note: While one of the archaeologists involved is from Tulane University, his entry into their program postdates my graduation, I don't know him.