Federalism has always been an issue in water management. The phasing out of grants for the construction of sewage treatment plants, the reduction of the federal contribution for construction of water development projects, the decrease in federal expenditures for basic water data collection, and the lack of federal funds for state dam-safety programs have all had an impact on water management and intergovernmental relations. This article summarizes contemporary issues in intergovernmental relations and water policy. First, the relationship between water, environmental protection, and federalism is examined. Then, the shifting financial responsibility for water pollution control from the federal to state and local governments is reviewed.
