Computer simulation and theoretical studies have improved significantl
y our understanding of the connection between the structural organizat
ion of water surrounding hydrophobic solutes and anomalous thermodynam
ic behavior associated with the 'hydrophobic effect'. Recent studies h
ave yielded the quantitative temperature dependence of hydrophobic int
eractions and the dependence of hydration free energy on solute size a
nd shape. The success of new proximity approximations, which assume th
at water organization is only locally sensitive to solute structure, h
as encouraged the study of the hydration of complex hydrophobic solute
s.