The epithelia that line the airways of the lung exhibit two general functions: (1) airway epithelia in all regions 'defend' the lung against infectious and noxious agents; and (2) airway epithelia in the proximal regions replenish water lost from airway surfaces, i.e. the 'insensible water loss', consequent to conditioning inspired air. How airway epithelia perform both functions, and co-ordinate them in health and disease, is the subject of this review.