"New Astronomy with a Virtual Observatory" S. G. Djorgovski Caltech There has been an unprecedented and continuing growth in the volume, quality, and complexity of astronomical data sets over the past few years, mainly through large digital sky surveys, with the data volumes measured in many Terabytes and soon Petabytes. This quantitative change in the amount of information available will lead to a qualitative changes in the ways we do observational astronomy. This will include statistical studies with an unprecedented accuracy (e.g., precision cosmology or Galactic structure), panchromatic views of the universe (leading to less biased pictures of the populations of AGN, galaxy clusters, star formation history, etc.), searches for rare or even previously unknown types of objects, and exploration of new domains of the parameter space (e.g., variability, low surface brightness universe, etc.). A Virtual Observatory (VO) concept represents a research framework needed to cope with this data flood in an effective way. There are many technological problems posed by the analysis of large and complex data sets expected in the VO context, but the most interesting challenges and opportunities are scientific and methodological.