This handbook was prepared by EPA to assist State Water Pollution Control Agencies to reclassify personnel positions and upgrade salaries in order to attract and retain qualified environmental staff. In discussions between EPA and State officials across the nation, it was learned that a major barrier with which they had to contend in their attempt to strengthen their programs was salary structures which did not properly reflect the new responsibilities of a position or the change in the market for scarce skills. Six States were selected as prototypes by EPA and the State environmental agencies to test the value of technical assistance to upgrade salaries. EPA engaged a contractor to provide intensive assistance to these States. Major findings and results achieved are included in this handbook.