Permanent sprayed concrete tunnel linings waterproofed with bonded membranes have been used at a number of important traffic projects over the last decade. Research has been carried out in several teams in order to increase the understanding of the function, properties and behavior of such linings under different loading and boundary conditions. The basic layout of this lining gives fundamental different system properties compared to the traditional lining systems. The main differences pertain to the groundwater exposure and the resulting hydraulic loading, the response of the concrete and membrane materials to this loading, as well as the geomechanically induced loading of the lining structure. The current understanding of the function and properties of such lining structures is presented in the paper based on review of recent research carried out in Norway, as well as field observations and monitoring carried over a several years. The influence of the water exposure on the final condition of the concrete and membrane materials has proven to be of vital importance for proper material testing and acceptance, assessments of the mechanical contribution of the bonded membrane, as well as assessments of the longterm durability of such linings. Obtaining realistic material parameters for the concrete and membrane materials subject to the boundary conditions posed by the groundwater exposure in an undrained structure is emphasized. Finally, some recent results from currently ongoing research on such linings, particularly the hydraulic response of the rock mass and the long term behavior of the concrete and membrane materials are presented.