Since the passage of Alaska's Water Use Act in 1966, the amount of water required by Alaska's growing population and resource development has increased very rapidly. The need to review the adequacy of existing water use laws and their administration has been expressed both by those trying to comply with regulations and by those attempting to enforce standards and permit requirements. This report summarizes the historical development of the doctrine of prior appropriation in Alaska. The statutory authority, regulations, and administration of Alaska's Water Use Act by the Alaska Department of Natural Resources are presented. Overlapping state agency authorities are discussed, and existing and proposed regulations are analyzed. The application of federal reserved water rights to Alaska and the status of quantification of these rights is explained. The report presents options for the State of Alaska to manage water use on federal lands, and for preserving minimum stream flows for maintenance of fish and wildlife habitats.