Washington State's first three years of experience (1971–1974) with the Shoreline Management Act are examined and evaluated in this article. The study focuses on the permit management system mandated by the SMA and describes how shoreline permits are issued and appealed, examines problems encountered in translating legislative policy into administrative action, and assesses the effect of the Shoreline Management Act on the allocation of coastal resources. Criteria for the assessment are derived from the policy of the Act and include: (1) minimizing environmental damage, (2) enhancing public access and recreation, and (3) encouraging water‐dependent uses.