This report provides an overview of fertilisation practices and water quality in 2007 on grassland farms that are allowed to use more animal manure than the limit set in European legislation (derogation). Data in this report can be used to study the consequences of this derogation on the water quality. The water quality values measured in 2007 reflect agricultural practices in 2006, which was the first year in which the derogation was applied. The European Nitrates Directive obliges Member States to limit the use of animal manure to a specified maximum. A Member State may request the European Commission for permission to deviate from this obligation under specific conditions. In December 2005, the Commission granted the Netherlands the right to derogate from the obligation from 2006 up to and including 2009. One of the underlying conditions of the derogation is that the Netherlands establish a monitoring network and report the results to the European Commission. In 2006, the National Institute for Public Health and the Environment (RIVM) and the Agricultural Economics Research Institute (LEI) set up a derogation monitoring network aimed at determining the effects of allowing farmers to deviate from the European use-standard for livestock manure. The monitoring network comprises 300 grassland farms and is part of the Minerals Policy Monitoring Programme. Fewer that 300 farms are reported in the network due to the fact that some farms ultimately did not make use of this option (derogation).