In this paper we present our authorization framework that supports the dynamic set-up of Web service federations for sharing data within virtual federations. Building on previous work, where we showed how the access control of Web services can be consolidated with the access control of the underlying database systems, we focus on the delegation of trust across administrative boundaries, thus enabling interorganizational collaboration. In order to restrict the flow of (possibly sensitive) access control information, authorization proceeds as an interplay of local and distributed policy enforcement. Scalability and performance of distributed policy enforcement are provided through caching techniques, which have to ensure strong cache consistency.