Static and frequency-dependent dipole polarizabilities a and first hyp
erpolarizabilities beta are calculated for H2O using self-consistent f
ield (SCF) and multiconfigurational self-consistent-field (MCSCF) line
ar and quadratic response theory. With an active orbital space where o
ne correlating orbital is included for each occupied valence orbital e
xcellent agreement is obtained with the experimental hyperpolarizabili
ty. Basis set dependency has been investigated and a detailed vibratio
nal analysis has been carried out.