A specification is presented of research needs and priorities involving water pollution control costs and benefits. A series of theoretical and methodological research needs are presented. Water quality management is required in a dynamic setting and over a broad range of hydrologic and economic conditions. The common property resource aspects of the problem with the prevalence of externalities complicates the issues involved. A major development of a cost-minimization methodological approach for water quality mangement is presented. An important distinction is made between the economic costs of pollution and the costs of pollution abatement. The economic costs of pollution are a function of water quality, whereas pollution abatement costs are typically a function of the degree of pollution control. For comparable cost comparisons, a transformation of pollution abatement costs in terms of water quality is desired. Finally, in a series of technical appendicies, the following subjects are discussed: Water pollution control cost and benefit estimates; and water quality associated health impacts.