A seminar was held to examine current water and sewer programs for small North Carolina towns in the context of Federal and State programs. State law, and planning for financing, construction, and management of water and sewer systems. The reports from the seminar are presented. The strengths and weaknesses of present governmental arrangements for planning are discussed in detail and recommendations are made for their study and modification. The problems considered are largely those of urbanization. Both central cities and declining rural areas face declining tax bases and demand for more services, for which one successful solution discussed is regionalization of governments.