Research whose purpose was to assess potential waterway user charges and their impacts and to provide the basis for the establishment of a state position is reported. The research was intended to serve the function of an informational report and not to provide hard recommendations either for or against a user charge. Most of the information was gathered through secondary sources published by water carrier associations and various federal agencies. Data were also collected, by means of survey and sampling techniques, from such primary sources as waterway carriers and industrial shippers. An analysis of the financial profile of the towing industry suggests that any user charge levied on towing firms will ultimately be passed on to the consumer. Smaller firms will probably suffer most since they operate with smaller margins and high turnover. Reduction in overall industry market share of national commodity transports will remove some of the economies associated with large-volume movements and eventually affect the profitability of larger towing firms. A segment toll represents the greater impact in terms of towing industry operating costs, shipping rates, state waterway traffic volume, employment, and electrical consumer utility costs. A $0.01/L ($0.04/gal) fuel tax represents the smallest impact. In light of the lack of complete empirical evidence, any cost-recovery scheme should be phased in on a gradual basis so as to allow for a cautious monitoring of both positive and negative impacts./Author/