Water storage tanks are an essential component of community water systems. In cold regions, storage is a critical element when emergency repairs are needed, or when water supply is seasonally limited. This paper describes the design, construction and operation of large volume storage facilities in cold regions with an emphasis on the unique engineering and construction management challenges associated with construction of these facilities in rural Alaska. Construction of large, flexible heated structures on permafrost requires specialized designs. All components must be insulated to minimize heat loss, to the surrounding environment. Heat must be continuously added and water circulated to prevent freezing. These add significantly to the design complexities. The high costs associated with building in the Arctic, are a result of the remote locations, harsh climate and shipping costs. Currently capital costs for water storage tanks range from $0.25 per liter in locations with favorable soil conditions to over $1.75 per liter in areas of ice-rich permafrost. Includes 5 references, figures.