The Water Quality Act of 1987 is a product of the ideas of federalism in place at the time of its development and passage. Driven by the "Reagan revolution," the 1980s was a time of substantial policy change as new imperatives such as states' rights, a smaller national government, an expanded role for the private sector, and deregulation came into vogue. The WQA is an expression of this policy environment, and represents several of these imperatives in the form of a revised infrastructure program to provide clean water. With a switch from a categorical grant to a block grant, the WQA exemplified a policy instrument consistent with the underlying tenets of the "Reagan revolution." This chapter examines the underlying elements of Reagan's philosophy of federalism, and details the ways in which the mechanisms and structure of the WQA reflect this philosophy. Finally, this chapter serves to lay the foundation for context of the development, implementation, and administration of the Water Quality Act.