  A detailed description of how black holes grow in full, non-linear general
relativity is presented. The starting point is the notion of dynamical
horizons. Expressions of fluxes of energy and angular momentum carried by
gravitational waves across these horizons are obtained. Fluxes are local and
the energy flux is positive. Change in the horizon area is related to these
fluxes. A notion of angular momentum and energy is associated with
cross-sections of the horizon and balance equations, analogous to those
obtained by Bondi and Sachs at null infinity, are derived. These in turn lead
to generalizations of the first and second laws of black hole mechanics. The
relation between dynamical horizons and their asymptotic states --the isolated
horizons-- is discussed briefly. The framework has potential applications to
numerical, mathematical, astrophysical and quantum general relativity.
