A number of pollutants acting either singly or in combination affect lakes and reservoirs. Attention is turning towards nonpoint sources and watershed management as offering a potential for more cost-effective control. Nutrient reductions below 1.0 mg/l from municipal treatment plants come with an extremely high reduction cost factor as a result of increased hardware, operations, and maintenance costs. Several nonpoint source control demonstration projects have been implemented since the passage of PL 92–500. Some were directed at the unknowns surrounding the control of runoff from both urban and agricultural sources. For agriculture there were questions about the agricultural institutional arrangement and the effectiveness of practices. One restriction was the voluntary nature of participation, deemed the only feasible implementation method. Several projects have now been completed and conclusions and recommendations made. The project approach is emerging as an effective method of focusing resources to control identified natural resource problems. Some projects did not meet all objectives because the problem was not clearly defined and early implementation was demanded. A strong relationship exists, suggesting that nutrient reductions may be obtained from watershed treatment, but quantification is still lacking. Other factors influenced the implementation and kept the focus from zeroing in on critical sources and areas, making project evaluation difficult. Modifications in project development and implementation steps will be discussed based on these findings and suggestions made for more efficient management of watershed projects.