Although the problem of bringing small water systems into compliance with the 1986 amendments to the Safe Drinking Water Act seems overwhelming, state governments are in a good position to facilitate and influence the solution to this dilemma. State drinking water regulators can give planning, technical, and financial assistance to small utilities; interact with public utility commissions; coordinate the activities of other water-related state agencies; motivate private investors; and reinforce financial assistance programs. Solving the small system dilemma will require substantial support from the federal government, professional organizations such as AWWA, and the private sector. Includes 14 references, figure.