Water quality trading is an innovative market-based approach to achieving water quality goals for nutrients such as phosphorus and nitrogen through programs that allow permitted emitters to purchase nutrient reductions from another source. Control costs for any one nutrient can differ from one emitter to another, and water quality trading provides an option for meeting discharge requirements in a cost-effective manner. Since 2007, the Electric Power Research Institute and a strong collaboration of power companies, wastewater utilities, farmers, state and federal agencies and environmental interests have been working to develop a regional interstate water quality trading framework in the Ohio River Basin. As environmental impacts come from many sources, our project is facilitating broad non-traditional collaborations to achieve a common goal of protecting and improving watersheds at lower overall costs. Properly designed and deployed, the proposed trading program in the Ohio River Basin will allow exchanges of water quality credits for nitrogen and phosphorus.