Part II of this article will discuss the liability that farmers face for nitrate pollution, including legislation enacted by both the European Community and the United Kingdom. Part III will discuss cross compliance, which, as indicated, involves the conditioning of payments to farmers upon their observance of environmental protection and other measures. This section commences with an examination of early initiatives and then directs its focus to the very considerable expansion of cross compliance under Mid-term Review. Part IV highlights aspects of the ongoing strategy to implement the polluter pays principle within the European Community. It then analyses the extent to which European Community regulation of agriculture applies the polluter pays principle and/or the provider gets principle. In this analysis particular attention is paid to the difficulties which are encountered when seeking to categorise cross compliance.