Abstract. In this paper we examine the opportunities for data integration in the context of the emerging Web Services systems development paradigm. The paper introduces the programming standards associated with Web Services and provides an example of how Web Services can be used to unlock heterogeneous business systems to extract and integrate business data. We provide an introduction to the problems and research issues encountered when applying Web Services to data integration. We provide a formal definition of aggregation (as a type of data integration) and discuss the impact of Web Services on aggregation. We show that Web Services will make the development of systems for aggregation both faster and less expensive to develop. A system architecture for Web Services based aggregation is presented that is representative of products available from software vendors today. Finally, we highlight some of the challenges facing Web Services that are not currently being addressed by standards bodies or software vendors. These include context mediation, trusted intermediaries, quality and source selection, licensing and payment mechanisms, and systems development tools. We suggest some research directions for each of these challenges.