This article encourages water suppliers to engage in a systematic compliance evaluation of their operations with respect to the host of environmental laws and regulations to which they are subject. A compliance audit looks at the aspects of utility operation that do not, or may not in the future, comply with regulations. The audit may focus on the SDWA or it may include some or all of the other state and federal laws applicable to suppliers. The article begins with an overview of the compliance auditing process and then discusses its potential benefits. A description is given of the auditing procedure and how it can be tailored to fit the needs of individual water systems. Includes 13 references, table.