ABSTRACT This,paper,summarizes,the,results,from,the first,3 years of a 5-year cost-effectiveness study,of the U.S. Geological,Survey,(USGS) stream-gaging,network.,The objective,of the,study,is to,define,and,document,the,most cost-effective,means,of furnishing,streamflow,information. In the first step of this study, data uses were identified for 3,493 continuous-record stations currently being operated in 33 States. In the second step, evaluation of alternative methods of providing streamflow information, flow-routing models and regression models, were developed for estimating daily flows at 251 of the 3,493 stations analyzed. In the third step of the analysis, relation­ ships,were,developed,between,the,accuracy,of the,stream- flow,records,and,the,operating,budget.