The increasing number of drinking water regulations being set by the USEPA and limited financial resources are creating a dilemma for many small water systems. Achieving compliance with the regulations within the time frames specified by the USEPA may not be possible, particularly for small systems. Under certain circumstances, the Safe Drinking Water Act (SDWA) allows water utilities to seek additional time to comply with new regulations by obtaining a variance or an exemption. Variance and exemption criteria are given. Includes 26 references.