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Numerous cities, municipal water districts, and other nonfederal entities have contracted for municipal and industrial water supply storage capacity in federal multipurpose reservoirs, under the provisions of the 1958 Water Supply Act and amendments thereto. In the past, allocation of storage capacity to municipal and industrial water supply and associated sponsorship arrangements have been an integral part of the process of planning and constructing new federal reservoir projects. More recently, cities and other municipal and industrial water suppliers are increasingly viewing storage reallocations and related operational modifications of completed federal reservoir projects as potential sources of supply for meeting growing water needs. Demands on existing facilities will continue to intensify in the future. The author outlines, from an institutional perspective, the role of federal multipurpose reservoirs in municipal and industrial water supply, with a particular focus on storage reallocations at existing projects. Includes 4 references, table, figure.