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Water pollution  taxes,  or  effluent  fees,  have  long  been  advocated  by  environmental  economists,as  a ,regulatory  approach ,to  cost ,effectively  achieve  water  quality  improvements.   The article  reviews  the  arguments ,in  favor ,of  taxes  and  traces  the  history  of  the ,idea  in  U.S.  policy debates.  Particular  attention  is  given ,to  the ,institutional  challenges  presented  by  a ,tax  system and its application in watershed,contexts where transport phenomena,are important. The article also addresses the question of why effluent taxes are so rarely seen in practice. Key Words: water quality, effluent fees, market-based incentives

Water Pollution Taxes: A Good Idea Doomed to Failure?