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The new edition of this celebrated and long-unavailable book preserves the original book's content and structure and its unrivalled presentation of a universal method for the resolution of a class of singularities in algebraic geometry. At the same time, the book has been completely re-typeset, errors have been eliminated, proofs have been streamlined, the notation has been made consistent and uniform, an index has been added, and a guide to recent literature has been added. The book brings together ideas from algebraic geometry, differential geometry, representation theory and number theory, and will continue to prove of value for researchers and graduate students in these areas.

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We develop a theory of affine flag varieties and of their Schubert varieties for reductive groups over a Laurent power series local field k((t)) with k a perfect field. This can be viewed as a generalization of the theory of affine flag varieties for loop groups to a "twisted case"; a consequence of our results is that our construction also includes the flag varieties for Kac-Moody Lie algebras of affine type. We also give a coherence conjecture on the dimensions of the spaces of global sections of the natural ample line bundles on the partial flag varieties attached to a fixed group over k((t)) and some applications to local models of Shimura varieties.

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