Active database systems can be used to establish and enforce data management policies. A large amount of the semantics that normally needs to be coded in application programs can be abstracted and assigned to active rules. This trend is sometimes called "knowledge independence"; a nice consequence of achieving full knowledge independence is that data management policies can then effectively evolve just by modifying rules instead of application programs. Active rules, however, may be quite complex to understand and manage: rules react to arbitrary event sequences, they trigger each other, and sometimes the outcome of rule processing may depend on the order in which events occur or rules are scheduled. Although reasoning on a large collection of rules is very difficult, the task becomes more manageable when the rules are few. Therefore we are convinced that modularization, similar to what happens in any software development process, is the key principle for designing active rules; however, this important notion has not been addressed so far, This article introduces a modularization technique for active rules called stratification; it presents a theory of stratification and indicates how stratification can be practically applied. The emphasis of this article is on providing a solution tQa very concrete and practical problem; therefore, our approach is illustrated by several examples.