Given the finite supply of water available for human use, continued chemical contamination of the aquatic environment may pose a significant human health hazard. Consequently, an effort must be made to develop ambient water quality criteria to protect human health and preserve the integrity of the aquatic environment. In developing water quality criteria based on human health effects, information on sources of exposure, pharmacokinetics, and adverse effects must be carefully evaluated. Information on sources of exposure is needed to determine the contribution of exposure from water relative to all other sources. Pharmacokinetic data are used in inter- and intraspecies extrapolation and in characterizing the mode of toxic action. Information on toxic effects includes data on acute, subchronic, and chronic toxicity, mutagenicity, teratogenicity, and carcinogenicity. In analyzing such information, a distinction is made between threshold and nonthreshold effects. Currently, carcinogenicity and mutagenicity are considered to be nonthreshold effects. For carcinogens and mutagens, criteria are calculated by postulating an "acceptable" increased level of risk and using extrapolation models to estimate the dose which would result in this increased level of risk. For other chemicals, thresholds are assumed and criteria are calculated by deriving "acceptable daily intakes" for man which would presumably result in no observable adverse effects. Neither process is exact, and attempts must be made to improve and verify risk assessment methodologies.