In 1993 Congress directed the US Environmental Protection Agency (USEPA) to prepare a report examining the technical and economic capacity of states and public water systems to implement USEPA drinking water regulations. As part of the report, USEPA was required to address the costs and benefits of current regulations. USEPA submitted the "Chafee Report"--so called because Senators John Chafee (R-RI) and Frank Lautenberg (D-NJ) wrote the amendment that required it--to Congress in September 1993. This article summarizes the portions of the report that provide demographic information about public water systems and a summary of USEPA's estimates of the costs and benefits of those regulations. Includes 12 references, tables, figure.