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Together, as we establish closer working relationships, we will build a new and wiser consensus for meeting tomorrow's water needs. Meeting the Challenge It is clear that the emerging new partnerships between federal, state and local governments in developing the nation's water resources provide the impetus and resolve for solving the significant challenges facing wise and needed water resources development. We believe that all partners are willing to critically examine existing relationships and methods for financing the planning and construction of needed water projects. The Corps is committed to rethinking our procedures. Planning responsibilites and planning costs both must be shared. We will more flexibly apply the standards and criteria which have evolved over theyears. We will apply uniform cost-sharing formulas, but will assure equitable financing arrangements based upon need and ability to pay. We will continue to work closely with non-federal sponsors in finding ways to formulate the "right" project and to develop financing packages, These include critical analysis of criteria, provided an acceptable balance between risks and safety is maintained, and sizing projects to facilitate cost -sharing. The Administration and Congress will need to work together to determine the exact cost-sharing percentages by project purposes. In the interim, the Corps will continue to adapt to changing times and through its decentralized organization will work closely with the units of government with which it shares water development responsibilities. Together, as we establish closer working relationships, we will build a new and wiser consensus for meeting tomorrow's water needs. The authors gratefully acknowledge the assistance and the participation of the Institute for Water Resources staff. J R Hanchey, Director of the Institute, provided noteworthy insight, critique and assistance, Mark Mugler, Mark Sickles and Eugene Stakhiv deserve special thanks, About the authors: General Wall is responsible for Corps Civil Works policy, planning, engineering and construction requirements, programs, operations, and maintenance of Civil Works activities in 11 engineering divisions and 36 districts involving $78 billion of facilities (including 500 dams, 3824 recreation areas and 25,000 miles of navigable waterways), and 27,000 employees with an annual budget of $2,7 billion throughout the United States and its territories, Kyle Schilling directs studies of current and prospective water issues such as financing and water conservation, He was senior inter-discipHnary study manager on the Northeastern United States Water Supply Study and staff leader of the 1977White House Drol)ght Study Group and the 1980 President's Water Policy Task Force Subcommittee on Urban Water Supply (Infrastructure ), 27