The problem of the ground state of hydrated electron is revisited with a fo
cus on the effects due to nonlocal dielectric response of water. The standa
rd variational analysis is performed. It takes into account - in addition t
o nonlocal polarization of nuclear modes - the electron repulsion from the
closed shells of water molecules, a possibility to form a cavity around the
electron and the interaction of the hydrated electron with the high freque
ncy electronic degrees of freedom of water. The classical dielectric contin
uum limit, shown for a reference, gives the ground state hydration energy t
hat is 2.5 times smaller than the experimental value. The situation alters
dramatically if one accounts for the nonlocal dielectric response of water.
If one takes literally the existing MD simulation data for the static wave
-vector dependent dielectric response function (with an "overscreening" res
onance at k similar to 3 Angstrom (-1)), the hydration energy becomes 3 tim
es larger than the experimental one. Thus, an over-screening may have a dra
matic effect on the formation of the hydrated electron. For a reduced heigh
t of the "over-screening peak", the ground state energy reduces to the meas
ured value. At the same time, over-screening enhances the localization of e
lectrons. The undamped resonance gives rise to an unphysically small locali
zation radius. A reduced resonance, that provides the correct ground stage
energy, is better in this respect but it still gives very compact localizat
ion: 2/3 of the Bohr radius. It is thus concluded that either the defect st
ructure of water around the electron suppresses the resonance, or the model
s of bulk water, which predict a high peak in the response function, are in
adequate. The study paves the way to future molecular or phenomenological m
ulti-order parameter models, in which the density and polarization of molec
ular dipoles and charge density distributions of the solvated electron are
considered on the same footing. Such models might reveal the reduction of o
ver-screening near the excess electron.