This paper will emphasize the importance of the anniversary inspection of steel water storage tanks, review the inspection procedures described in section nine of the AWWA Standard for Painting Steel Water-Storage Tanks, ANSI/AWWA D102-78. The paper will describe the anniversary inspection program of the City of Austin, Texas, and discuss specific examples of coating system failures and remedial actions taken during anniversary inspection. The coating failures were due to various causes: cathodic protection system problems, solvent entrapment in the paint coating and several types of coating disbondment.