Defining the ways for components around the world to collaborate with each other to execute applications over the internet is one of the biggest challenges for computer scientists and engineers. Recent development on Web/Grid services have achieved some success and showed very promising future. However, there still exist several open issues, such as state management. In this paper, we analyze the requirements for state management. We compare different ways of achieving state management in Web Service, Grid Service and the recent Web Service Resource Framework, and articulate the costs and benefits of each approach in terms of fault tolerance, communication cost, etc. We propose a new approach for grid service state management. A prototype is implemented using the Globus Toolkit as a proof of concept.