Wetlands compensation banking is an emerging tool for coordinating wetland compensatory requirements of the section 404 program of the Clean Water Act, as well as requirements of some state and local regulatory programs. The Washington State Department of Transportation (WSDOT) Wetland Compensation Bank Program (WCBP) Memorandum of Agreement (MOA), signed on September 15, 1994, by five federal agencies and three state agencies, coordinates state and federal actions when a compensation bank is implemented in connection with a highway development project. Local county, city, and tribal governments are included as participants in the MOA process. The goal of this report was to identify important issues WSDOT must consider when it implements the WCBP within county and tribal government jurisdictions. Thirteen county governments and four tribal governments were asked to answer questions about their government structure and policy framework, as well as a series of questions specific to the MOA process. Both county and tribal governments are generally impressed with the quality of the MOA and are very interested in participating in the process. A majority of governments would like to see an increased role for county and tribal governments, including a voting membership on the program's Oversight Committee, early participation in site selection, and possible joint ventures in developing and/or managing banks. The responses reflect an awareness by the counties and tribes that, although the MOA is an agreement between state and federal agencies, the implementation of the agreement on the ground and in the landscape will mainly impact local jurisdictions and their inhabitants.