To extend the authorization of the Water Resources Research Act of 1984 through the end of fiscal year 1994.

Amends the Water Resources Research Act of 1984 to change the name of the Trust Territory of the Pacific Islands to the Federated States of Micronesia.

Reauthorizes the grant program for water resources research and technology institutes on a dollar-for-dollar matching basis for FY 1990 through 1994. Requires that such funds be used only for the reimbursement of direct cost expenditures incurred for the conduct of the water resources research program.

Directs the Secretary of the Interior to conduct an evaluation of each institute every five years to determine if it qualifies for further support. (Currently the Secretary must make such determination every four years.)

Extends the authorization of appropriations for the grant program from FY 1990 through 1994.

Authorizes appropriations for FY 1990 through 1994 only for the reimbursement of the direct cost expenses of additional research by institutes which focus on water problems and issues of a regional or interstate nature beyond those of concern only to a single State and which relates to specific program priorities identified jointly by the Secretary and the institutes. Requires such funds when appropriated to be matched on a not less than dollar-for-dollar basis by non-Federal sources.

Extends the authorization of appropriations from FY 1990 through 1994 for the matching grant research program concerning any aspect of a water resource-related problem which the Secretary deems to be in the national interest.

Authorizes appropriations to extend the technology grant program from FY 1990 through 1994.

Requires rules and regulations issued prior to the date of enactment of the Water Resources Research Act of 1984 to remain in effect until superseded by new rules and regulations promulgated under this Act.

Authorizes the Secretary to enter into contracts or cooperative agreements with educational institutions, private firms, foundations, or individuals, Federal, State, or local agencies, or national laboratories to carry out research, development, and demonstration projects relating to: (1) contamination of groundwater aquifers and the development of cost-effective technologies for the prevention, detection, monitoring, remediation, and mitigation of aquifer contaminants; (2) effects of potential climate changes on surface and groundwater quantity and quality; and (3) the extent and effect of chemical contaminants in groundwater, their toxicological significance, and strategies and recommendations for pollutant reduction and detoxification. Authorizes appropriations for FY 1990 through 1994 for entering into such contracts or agreements.