Analysis of a microscopic Landau-Ginzburg-Wilson model of 3D short-ranged wetting shows that correlation functions are characterized by two length scales, not one, as previously thought. This has a simple diagrammatic explanation using a nonlocal interfacial Hamiltonian and yields a thermodynamically consistent theory of wetting in keeping with exact sum rules. For critical wetting the second length serves to lower the cutoff in the spectrum of interfacial fluctuations determining the repulsion from the wall. We show how this corrects previous renormalization group predictions for fluctuation effects, based on local interfacial Hamiltonians. In particular, lowering the cutoff leads to a substantial reduction in the effective value of the wetting parameter and prevents the transition being driven first order. Quantitative comparison with Ising model simulation studies due to Binder, Landau, and co-workers is also made. Progress has recently been made towards resolving problems in the theory of three-dimensional (3D) shortranged wetting [1-3] from analysis of a nonlocal (NL) interfacial Hamiltonian [4 -6]. Starting from a LandauGinzburg-Wilson (LGW) model, it can be shown that the interfacial binding potential contains two-body interfacial interactions and also has a simple diagrammatic representation [5,6]. The latter allows one to visualize the binding potential as arising from tubelike fluctuations that zigzag between the surfaces. Numerical and renormalization group (RG) studies of critical wetting using the NL Hamiltonian [4] are in better agreement with Monte Carlo simulations of the transition in the 3D Ising model [2,3]. As is well known, the latter reveal neither the strong nonuniversal criticality [1] nor the stiffness-instability behavior [7] predicted using local interfacial Hamiltonians.In this Letter, we highlight the specific mechanism by which nonlocality resolves long-standing problems in the theory of 3D wetting. From reanalysis of a LGW model, we show that correlation functions are characterized by, not one but, two diverging parallel length scales. Similar to the binding potential, this also has a simple diagrammatic explanation within the NL theory and shows how correlations arise from the interaction of interfacial and tubelike fluctuations. The appearance of a second diverging length has important consequences: First, the NL model is thermodynamically consistent, satisfying an exact correlation function sum rule due to Henderson [8]. Second, for critical wetting the second length lowers the cutoff of interfacial fluctuations controlling the repulsion from the wall. This simple mechanism pinpoints some inadequacies of previous effective Hamiltonian studies [1,7]. In particular, it prevents a stiffness instability [7], preserving the continuous nature of the transition, and leads to a lower, effective value for the wetting parameter controlling the nonuniversality implying that critical singularities are much closer to their mean-field predictions. This allows positive comparison with the resu...