Boston, like most coastal cities, has long relied on its rural hinterland for water. Historically, external sources of water were developed when needed with little concern for water conservation. Drought in the early 1960s revived plans to divert water to metropolitan Boston from the Connecticut River. Opposition by environmentalists led Governor Dukakis in 1978 to establish a Long Range Water Supply Study For Metropolitan Boston, to be monitored by a state-funded Water Supply Citizens Advisory Committee (WSCAC) representing diverse interests. Under WSCAC's prodding, state water policies eventually embraced demand management as reflected in: (1) new water laws; (2) establishment of the Massachusetts Water Resources Authority (MWRA); (3) use of higher fees and water-saving technology by MWRA; and (4) deferral of new diversions. Contrary to earlier predictions, per capita demand in the Boston Metropolitan Area fell 16 percent between 1985 and 1992; aggregate demand is now well within the safe yield of the system. A citizen ''watchdog'' committee, funded with no strings attached, thus strongly influenced a complex resource planning process, while avoiding the costs and rancor of litigation.