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The increasing budget deficits may provide the impetus for acceptance of the user charge principle on the federal level. Development, management and protection of water resources should be controlled at that level of government nearest to the problem with powers which give it the capacity to represent all of the vital interests involved. Public understanding of the problem is growing. 10 The increasing budget' deficits, which make it harder to obtain federal appropriations for water projects, may well provide the impetus for acceptance of the user charge principle on the federal level; it has always been a dominant consideration in locally financed projects. A Re.examination of Laws The sixth theme, dealing with a re-examination of laws and legal institutions governing water resources in the light of contemporary water problems, is being implemented piecemeal. Among examples that could be cited are the provisions of the ~ter Resources Development Act of 1974, dealing with floodplain management, and the 1982 Reclamation Reform Act. While the Commission's recommendations for elimination of subsidies in these areas have not been fully accepted, some progress has been made, The impact of budget deficits will be felt in this area, also. With respect to groundwater law, singled out by the Commission for special attention, the re-examination appears to be taking place in the courts, via the Sporhase and El Paso decisions.4 The full impact of these decisions is difficult to foresee, but it will undoubtedly lead to greater understanding of the value of groundwater and probably to revision of existing law governing the use of groundwater, Increased Local Control The Commission's seventh and final theme was the statement of its belief that development, management and protection of water resources should be controlled at that level of government nearest to the problem with powers which give it the capacity to represent all of the vital interests involved, and that the role of the federal government in the planning and financing of water programs should gradually diminish. Here, again, the federal budget deficit is becoming a driving force. As state and local governments find their projects deferred, waiting for federal funds, while inflation pushes costs higher, they may find it more economical to take action to meet their needs on their own. Where We Stand. . . Judgments as to progress toward the improvement of national water policy are necessarily subjective. It seems, however, that the seven recurrent themes identified by the National Water Commission in its studies are still the driving force behind progress on water resources policy - aided by the Reagan Administration through its budgetary policies. Dark clouds loom ahead, to be sure, on the nation's water resources horizon, Encroachments on floodplains and anthropological alterations of watersheds are causing an increase in average annual flood damages. Toxic wastes are polluting groundwater in many areas. Consumptive use in some basins exceeds the available supplies. Groundwater is being over-pumped in several basins. The water infrastructure in our older cities is deteriorating, The best and lowest cost projects have been built first, and the cost of development of new supplies is exorbitant.