The Environment Agency for England and Wales is required to take account of likely costs and benefits in carrying out its duties. Given the complex nature of environmental problems, this task requires sensitivity to issues such as uncertainty, multiple objectives and conflicting value systems. This paper describes a multi-attribute methodology used to carry out this duty in one area of the Agency's work, the regulation of the water industry. The method includes nine attributes measuring the benefits from water quality improvement schemes, and one attribute measuring scheme costs. It is a workable method that clearly satisfies the requirements for the Environment Agency to take account of the costs and benefits of its actions. Refinements are suggested to improve the individual attribute scores, the weights used in prioritisation and the incorporation of costs.