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Both the City of Chelan, Washington, and the Lake Chelan Reclamation District (LCRD) recognized that compliance with the Surface Water Treatment Rule would require changes to the way they had operated their water systems in the past. It was important to complete a step-by-step evaluation of alternatives to develop the most effective and cost efficient compliance programs. Sharing a common raw water source (Lake Chelan) may provide some opportunity for cost sharing in each of their separate compliance programs. This paper presents their individual and potential combined alternatives for complying with the SWTR.