(a) Release of grant funds to participating institutes is conditioned on the ability of each receiving institute to plan, conduct, or otherwise arrange for:   (1) Competent research, investigations, and experiments of either a basic or practical nature, or both, in relation to water resources;   (2) Promotion of the dissemination and application of the results of these efforts; and   (3) Assistance in the training of scientists in relevant fields of endeavor to water resources through the research, investigations, and experiments.

(b) Such research, investigations, experiments and training may include:   (1) Aspects of the hydrologic cycle;   (2) Supply and demand;   (3) Demineralization of saline and other impaired waters;   (4) Conservation and best use of available supplies of water and methods of increasing such supplies;   (5) Water reuse;   (6) Depletion and degradation of ground-water supplies;   (7) Improvements in the productivity of water when used for agricultural, municipal, and commercial purposes;   (8) The economic, legal, engineering, social, recreational, biological, geographical, ecological, or other aspects of water problems;   (9) Scientific information dissemination activities, including identifying, assembling, and interpreting the results of scientific research on water resources problems, and ;   (10) Providing means for improved communication of research results, having due regard for the varying conditions and needs of the respective States and regions.

(c) An institute shall cooperate closely with other colleges and universities in the State that have demonstrated capabilities for research, information dissemination and graduate training in the development of its program. For purposes of financial management, reporting and other research program management and administration activities, the institutes shall be responsible for performance of the activities of other participating institutions.

(d) Each institute shall cooperate closely with other institutes and other research organizations in the region to increase the effectiveness of the institutes, to coordinate their activities, and to avoid undue duplication of effort.