Eddy fluxes play an essential role in determining structure of the Antarctic Circumpolar Current (ACC). In particular, the eddy flux of buoyancy must balance the atmospheric buoyancy forcing, the air/sea buoyancy flux and the wind driven Ekman flux. We will describe this balance as seen in a variety of eddy resolving models and from analysis of observations. What becomes clear in these descriptions is the presence of a leading order balance between the eddy fluxes and the wind driven flow that results in the “vanishing of the Deaconn cell.” However, it is the secondary balance between the air/sea buoyancy fluxes and the residual circulation that leads to the meridional overturning of the ACC and hence the subduction of surface waters to form Antarctica Intermediate Water. Finally, by examining the results of some idealized models we will comment on the details of the eddy fluxes and whether these can be captured accurately with large scale parameterizations.