With the beginning of a new Administration and the promise of new directions and possibilities, EPA's Office of Wetlands, Oceans and Watersheds (OWOW) will also be looking to the future. Our new EPA Administrator, Lisa Jackson, has outlined three fundamental values: science-based policies and programs, adherence to the rule of law, and transparency. OWOW embraces these principles and looks forward to working with our new leadership to make them a reality here at EPA. In the coming year, OWOW will continue to advance strategies to reduce nutrients, which are a leading cause of pollution in our rivers, lakes, wetlands and estuaries. With the release of the new Gulf Hypoxia Action Plan in 2008, we have outlined an ambitious strategy to help combat hypoxia. Another priority will be to prevent healthy watersheds from becoming degraded. While we have invested heavily in the past decade and made significant progress in cleaning up impaired water bodies, we must also look to protect those water bodies that meet standards and support a diversity of aquatic life. And finally, we will continue to work closely with the Corps of Engineers on policies related to the 'Waters of the U.S.' and strive to achieve a net increase of wetlands with a greater focus on biological functions. We need to build upon and expand our partnerships with our sister federal agencies and to work more closely with our state partners to ensure that our programs deliver even better environmental performance for the American public. Clean water is everyone's business. And everyone must do his or her part to protect this precious and finite natural resource. In this report the following subject areas are covered: Protecting and Restoring Water Quality on a Watershed Basis; Protecting and Restoring Wetlands and Natural Habitats; Protecting and Restoring Oceans and Coasts; Addressing Global Climate Change in Coastal Communities; Improving Monitoring and Assessment; Improving Environmental Performance and Program Management.