A successful SCADA system should be driven by the following concepts: low cost of ownership through longer system life; longer life through modular hardware that is easily expanded; reliability through networked redundancy; multi-level security system; early warning problems through extensive alarming and events reporting capabilities; fast, dynamic, interactive data presentation to the operator; multi- tasking operating system software; combined real-time and historical trending; distributed database and computer processing; ease of configuration for database, displays, and reports; long term supplier committed to the industry; full line of supporting services. Based on these concepts, the best approach to address the utility's requirements and the customer's needs, is the use of microcomputers operating over a local area network in a multi-tasking, multi-user, real-time operating system transporting dynamic interactive data in a distributed network. This paper looks at each of the elements of such a system with their important functional requirements to achieve these desired goals.