Management by objectives is intrinsic to the EU Water Framework Directive (WFD) and Swedish environmental policy. We describe three approaches to formulating objectives via model-assisted dialogue with local stakeholders concerning eutrophication in a coastal drainage area in south-eastern Sweden: a WFD eco-centred approach based on ‘natural state’; Swedish environmental policy reformulated into quantified reduction goals; and a participatory approach based on local stakeholder definitions of desirable environmental status. Despite problems with representation, we conclude that local stakeholder participation in formulating local goals could increase goal functionality and robustness when adapting and implementing national and EU WFD goals at the local level.