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Over the last several years, the water management agencies in the Tualatin River watershed that includes 9 cities, the Tualatin Valley Water District, and Clean Water Services have established partnerships to address water resources management issues. The partnerships involve planning for regional water supplies, source water development, water quality improvements and responses to the Endangered Species Act. Recently, several of the water resources management agencies developed an Integrated Water Resources Management Strategy (IWRM). This strategy has provided a framework for addressing several water resources management objectives. One of the key objectives was identifying future water supplies for agriculture, instream flow restoration and municipal source water. Through an intergovernmental agreement, the water management agencies formed the Tualatin Basin Water Supply Feasibility Study partners. The purpose of the study was to evaluate the needs of the Tualatin Basin for reliable, safe and cost effective water supply. There are several benefits and challenges to establishing this study partnership. This paper discusses the process and agreement to develop the partnership for the study. Finally, the paper describes the benefits and challenges to the partnerships for meeting future water supply needs. Includes figure.