The federal flood insurance program has made it possible for landowners in flood hazard areas to obtain subsidized insurance protection against flood damages. As a condition of this protection, however, the local governments in which flood-prone land is located must adopt various restrictions on the use of land in the floodway and flood hazard areas. The North Carolina legislative center piece for authorizing local flood plain regulations is the Floodway Act. This act is deficient both in terminology and in scope of coverage. To remedy these deficiencies it is recommended that the Act's coverage be broadened to include flood hazard areas beyond the floodway, to include areas of coastal flooding, and to delete the uses permitted as of right in the floodway. State property must meet the federal requirements in order for the state to obtain insurance or to qualify as a self insurer. Statutory changes are suggested to meet these needs.