This article examines the extent to which the federal drinking water program is meeting its public health protection goals and reviews the costs regulations imposed on society at a time when the Safe Drinking Water Act (SDWA) is under review for reauthorization by Congress. Under the 1986 amendments, USEPA has promulgated seven significant rule-making packages covering more than 70 contaminants. The regulatory record reveals a high degree of variability in costs and risk reductions associated with these rules. For example, nearly 99 percent of the program's total carcinogenic risk reduction is attained for about 60 percent of the total regulatory costs for carcinogens because of the maximum contaminant levels established for 10 contaminants. This means about 40 percent of carcinogen-related regulatory costs are achieving an insignificant 1 percent of cancer risk reduction. If the regulations were focused on systems serving more than 500 people, almost 90 percent of total carcinogenic health risk reduction benefits could be realized at only 43 percent of the costs. Includes 18 references, tables.