With increasing frequency, public water supply systems are having to investigate alternative funding sources to raise the capital needed for expansion. System development charges have surfaced as the financing mechanism of choice in municipal settings across the country. Legislation regulating such capital charges have been adopted in a surprising number of states in recent years. The author surveyed AWWA sections and conducted research to document recent legislative action in the United States to assess the variety and nature of state legislation regulating system development charges. The findings paint a vivid picture of a current trend prevalent in the United States. If continued, the trend does little to move us any closer to standardizing the procedures and ground rules for others to consider in implementing system development charges. Includes 2 references, table.