This paper argues that a re-examination of current goals and methodologies and modifications to management practices are necessary if urban water crises are to be minimized. Three problem areas are focused on: (1) the projection of demand and the estimation of supply; (2) the alternatives for balancing demand and supply; and (3) the management of wastewater. An historical examination of urban water systems is presented to provide an understanding of how water systems have developed in the United States. An evaluation of both private and public institutions is included to shed light on the efficacy of each with respect to water quality. In addition, current problems are further illustrated through an examination of how problems of quantity and quality were resolved in the past. Recommendations for improving the situation are made. A bibliography and numerous tables and charts showing statistical data are included. (Author/EB)