In this report, a joint IAHR and UNESCO panel adresses the current developments in hydraulic engineering and their implications for the education of hydraulic engineers. The framework of underlying basic sciences, geoscienses and engineering sciences and the large variety of engineering subjects involved must be seen in the broader context of the natural and social environment. In addition to its classical tasks, hydraulic engineering has evolved to deal with water quality, environmental issues and ecology, and its further broadened by the new challenges posed by the need for sustainable development and by the threat of global changes. New developments in science and technology and computer sciences must be reflected both in contents and methods of teaching. Education must also provide engineering skills and procedures as well as professional preparation including the ability to work in terdisciplinary teams. In view of these developments, continuing education will have major role to play, and large-scale systems and international aspects will be of increasing importance. These developments call for suitable IAHR activities.