"The authors describe and analyze an unconventional approach to river basin management in a developing country undergoing rapid economic, political, and institutional change. The founding of the Brantas River Basin Management Corporation (Perum Jasa Tirta I - PJT 1), a national state-owned company for river basin management, initiated an emphasis on river basin management to operate and maintain existing infrastructure, plan and implement the allocation of water, and address problems that affect basin-level water resources. The Brantas River basin is located within the province of East Java in Indonesia. It has an area of approximately 11,800 square kilometers and makes up 25 percent of East Java's land area. The basin's population, which amounts to nearly 15 million, has increased by 53.4 percent over the past 30 years and represents 42.4 percent of East Java's population with a density of 1,249 per square kilometer. A shift has taken place in Indonesia since the mid-1990s from emphasizing infrastructure development to strengthening institutional aspects (hydrology, flood fighting, flood warning, flood management, and so on). The institutional arrangement for water resources management in the Brantas basin through a state-owned corporation is an interesting model. PJT I has achieved results in implementing a reasonably good system of water allocation and management and a reliable flood forecasting system, as well as maintaining major infrastructure in fairly good condition. Managing water quality, catchment conditions, and the river environment, however, are the responsibility of many entities, and there is need for greater coordination and authority to address these issues. "--World Bank web site.