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on the authorities delegated to it by Congress. These may include authorities otherwise possessed only by the Federal Government and its agencies. In other words, federally-chartered corporations could, if authorized, perform federal regula tory functions or even issue obligations with the guarantee of the Federal Government (National Water Commission, 1973). A National Water Commission study of the federally-chartered corporation as a mechanism for water management concluded that to be most effective, the corporation would need to involve state governments in its operation. In fact, the study implied that to be acceptable as a river basin management institution, the federally-chartered corporation would have to be controlled by the states in a river basin, i.e., state appointed representatives or directors would have to represent a majority of the corporation's board of directors. The study concluded that there should be no legal constraint to Congress permitting this in the corporation's enabling legislation (National Water Commission, 1973). A greater problem than state control of a federally-chartered corporation, the study stated, would be possible prohibitions in state constitutions against the assignment of any state powers to, or the exercise of any state authority by, the corporation. One way to overcome such prohibitions, the study suggested, might be for Congress to grant advance consent for river basin states, together with the Federal Government, to enter into a compact to establish a corporation, or to become members in an already established corporation. Since an interstate compact entity is by definition an agency of the participating states, it would be in a position to exercise state authority and thus would not violate the possible constitutional prohibitions. The study said the problem could -28-