Critical Heat Flux (CHF), also called burnout, is one of the major design limits for water-cooled divertors in tokamaks. Another important design issue is the correct thermal modeling of the divertor plate geometry where heat is applied to only one side of the plate and highly subcooled flow boiling in internal passages is used for heat removal. This paper discusses analytical techniques developed to address these design issues, and the experimental evidence gathered in support of the approach. Typical water-cooled divertor designs for the International Thermonuclear Experimental Reactor (ITER), where peak divertor heat fluxes as high as 15 MW/m2 are expected, are analyzed, and design margins estimated. Peaking of the heat flux at the tube-water boundary is shown to be an important issue, and design concerns which could lead to imposing large design safety margins are identified. The use of flow enhancement techniques such as internal twisted tapes and fins are discussed, and some estimates of the gains in the design margin are presented. Finally, unresolved issues and concerns regarding hydraulic design of divertors are summarized, and some experiments which could help the ITER final design process identified.