This report examines the challenges and uncertainties facing municipal water systems in 1996. The authors developed several hypothetical scenarios to envision what water systems will look like in 2010. The scenarios can be used as learning tools for people considering the future of water systems. The scenarios include a mandate from the federal government; a situation in which the federal government and financial infrastructure are weak, which in turn weaken the availability and safety of water; a dominant and highly regulatory federal government and strong financial environment; and a situation with a weak federal presence but supportive financial environment. These hypothetical scenarios can be useful to planners, managers, citizens, and policy makers.