Management of water resources is becoming a major challenge for many of our clients. Like most governments, the Bank has not found it easy to develop structures for simultaneously ensuring that we deal with water holistically and respect subsidiarity when it comes to water-using sectors of the economy. Good river basin management agencies, however, do exactly that -- they have the power and instruments to ensure a consistent and effective framework for bulk water and water quality management. But they do it through governance arrangements that involve all users, and do not try to micro-manage the business of utilities, irrigation districts or environment agencies.