Chemical and physical data suggest that the relatively shallow, western part of the Cerro Prieto reservoir is bounded below by low permeability rocks, and above and at the sides by an interface with cooler water. There is no continuous permeability barrier around or immediately above the reservoir. Permeability within the reservoir is dominantly intergranular. Mixture with cooler water rather than boiling is the dominant cooling process in the natural state, and production causes displacement of hot water by cooler water, not by vapour. Local boiling occurs near most wells in response to pressure decreases, but no general vapour zone has formed. ?? 1984.