This paper discusses public-private partnerships from three perspectives: the magnitude of the problem of financing environmental projects; the potential impact of cooperative efforts between public and private sectors; and ways in which the US Environmental Protection Agency is encouraging the use of public-private partnerships and other nontraditional mechanisms to support environmental services. Even as costs of complying with current environmental guidelines are expected to rise 50 percent during this decade and legislation for additional environmental protection is expected, at the same time traditional financing mechanisms are being restricted. The use of private companies to provide some services for public entities--services provided by consultants, bankers, construction firms, and so forth-- results in better service, market forces lowering prices, and access to emerging technologies. The USEPA's focus in this area is three-fold: to raise awareness of financing problems, to develop and test nontraditional financing techniques, and to disseminate information about these financing techniques.