The idea that “the dykes make up the state” has long shaped Dutch water policy, and managing water affairs remains essentially a core public activity. This is in part due to the highly specific challenge of maintaining w'ater levels at desired levels in extensive reclaimed areas. However, private enterprise has a role in actually implementing many water management activities, such as dredging and the construction of dykes, pumping stations and wastewater treatment plants. This overview is important to understand the institutional set-up that has a direct influence on water governance and financing frameworks in the Netherlands. Territorial decentralisation concerns the provinces and municipalities, which have, in principle, a broad responsibility while functional administrative bodies (e.g. regional water authorities) are responsible for one or more specific tasks.