This report describes the institutional mechanisms, intergovernmental arrangements and sources of financing that are recommended to implement the Association of Monterey Bay Area Governments Water Quality Management Plan for Monterey and Santa Cruz Counties. Recommendations are presented for institutional responses to a total of eight case studies (lake maintenance, septic system maintenance, control of erosion and sedimentation, control of nitrate pollution of groundwater, preventing saltwater intrusion, preserving groundwater recharge areas, and prevention of pollution from sanitary land-filled leachate). Recommendations are also made for a continuation of the Section 208 Water Quality Management Planning process. The institutional arrangements feature maximum reliance on existing powers of existing local governments. A newly authorized governmental mechanism in California -- the On-site Wastewater Disposal Zone (OWDZ) -- is recommended for management of septic systems.