y important role in the European water sector as it is instrumental in setting standards and requirements that have a significant impact on the required water services and infrastructure to meet these. There has also been a complementary process of devolving responsibility for a range of water service functions away from central government to either local or regional bodies or delegating to state or non-state agencies. This process is the "hollowing out" of the nation state (Jessop, 1995). The terms of international trade and matters such as subsidies and access to the provision of services and markets are also increasingly being regulated internationally. Such moves will contribute to the further embedment of globalisation and the buttressing of the role of non-state actors, such as trans- national and multinational corporations, which are better able to mobilise access to resources and to project themselves on a global scale in their areas of expertise. This has been under way in the water sector for some time, with a small number of North American and European utility corporations taking on increasing responsibility for the provision of water services across the globe. Paradoxically, these globalising trends are also likely to lead to a rise in locally based initiatives such as partnerships or local affiliates that reflect and capitalise on local circumstances in order to minimise risk. Both trends are likely to have a significant influence on meeting the demand for and the control and financing of water infrastructure services. An important factor will be the degree to which national governments or agencies will have the ability, power and expertise to exercise oversight of non-state actors. Scarcity and conflict Earlier this report highlighted the problems of access to water. According to Alcamo et al. (2000), the population living in water-stressed areas could double over the period 1995-2025. By 2030, two-thirds of the world's population may experience moderate to high water stress, mainly in the least dev