This study responds to a provision in the 2001-03 Transportation Budget that directs JLARC to conduct a performance audit to evaluate the advantages and disadvantages of removing the Aviation Division from the Department of Transportation and creating a Washington State Department of Aviation. This study: 1) reviews the reasons advanced both for and against continuing to house the Aviation Division within WSDOT; 2) examines customer perspectives towards the Aviation Division; and 3) assesses the cost implications of removing the Aviation Division from WSDOT and creating a separate agency. The study makes three recommendations.