The nation’s public clean water agencies, as well as the communities and households they serve, are facing ongoing impacts from the most severe economic downturn since the Great Depression. In this context, the U.S. Environmental Protection Agency (EPA) and States with delegated Clean Water Act authority continue to impose costly regulatory requirements on, and pursue enforcement actions against, these utilities without fully considering the economic conditions impacting these agencies and the effectiveness of these expenditures in meeting environmental goals. NACWA is working to establish a new approach to assessing affordability and community financial capability limits that incorporates sound economic principles and encourages flexibility and innovation towards meeting the goals of the Clean Water Act in a sustainable manner.