Utilizing economic criteria, the report analyzes Connecticut's water law system. The author employs as evaluatory tools cost-benefit analysis and the degree of economic flexibility afforded by water rights and regulations. Competing property rights, economic models, public policies and programs, and research incentives are interrelated with economic costs. Recommendations are made in four areas: public water supplies, water rights, stream flow and groundwater management, and pollution control. The effect of the non-riparian status of Connecticut's public water supplies is considered in light of condemnation powers, compensation requirements, and legislative restrictions. Locational advantages, common-law pollution protection, efficiency in allocating among consumptive uses, and the ineffectiveness of riparian doctrines in protecting recreational and environmental values are all discussed as they relate to suggested improvements in Connecticut's existing water law system. Stream flow and groundwater management are examined in terms of the authority needed for governmental management, stream flow objectives, administrative problems, and the impact on water users. (WRSIC abstract)