The agencies and interests involved in water supply in the Northern New Jersey metropolitan region are discussed, and the capacity of each to influence relevant public decisions. The ability of individual interests to block major action by withholding their cooperation in a highly fragmented decision-making process severely impaired the potential coordinative role of state government and other area-wide entities. A key factor was the strong tradition of local autonomy in New Jersey. Among the water agencies, the large private water companies, despite their handicaps, appeared better able to expand their systems, because of their freedom from control by taxpaying voters, the ability to transcend local boundaries without threatening municipal autonomy, and incentives not possessed by government-owned water agencies. Among water consumers, large industrial users were most influential, best organized and most adept at making their needs known to decision-makers. (Author)