Since 1987, New York City has enhanced its comprehensive watershed monitoring program (including pathogen monitoring), developed a disease surveillance and outbreak detection program, and implemented a watershed protection program that has improved water quality. The city recognized that high quality source water and effective watershed protection are the foundation of filtration avoidance under the federal Surface Water Treatment Rule (SWTR). Accordingly, the city applied for and received filtration avoidance determinations for the Catskill and Delaware portions of its system. This article summarizes the city's water quality data and watershed monitoring and protection programs in the context of the SWTR. A Watershed Memorandum of Agreement, signed January 21, 1997, provides for land acquisition, updated watershed regulations, and partnership programs. As part of the watershed agreement, USEPA issued a four month interim filtration avoidance and will issue a revised filtration avoidance letter in 1997. Provided the city meets certain provisions, this will allow it to avoid filtering the Catskill and Delaware supplies until at least April 15, 2002. Includes 6 references, tables, figures.