Ospreys (Pandion haliaetus) have been the focus of conservation efforts since their dramatic population decline attributed to dichlorodiphenyltrichloroethane and related chemicals in the 1960s. Several recent studies of ospreys nesting in the United States have indicated improved reproduction. However, the density of breeding ospreys varies greatly among locations, with some areas seemingly habitable but not occupied. Because of concerns about pollution in the highly industrialized portions of the Delaware River and Bay, USA, we evaluated contaminant exposure and productivity in ospreys nesting on the Delaware River and Bay in 2002. We characterized habitat in the coastal zone of Delaware, USA, and the area around the river in Pennsylvania, USA, using data we collected as well as extant information provided by state and federal sources. We characterized habitat based on locations of occupied osprey nests in Delaware and Pennsylvania. We evaluated water clarity, water depth, land use and land cover, nest availability, and contaminants in sediment for use in a nest-occupancy model. Our results demonstrated that the presence of occupied nests was associated with water depth, water clarity, distance to an occupied osprey nest, and presence of urban land use, whereas a companion study demonstrated that hatching success was associated with the principal components derived from organochlorine-contaminant concentrations in osprey eggs (total polychlorinated biphenyls, p,p'-dichlorodiphenylethylene, chlordane and metabolites, and heptachlor epoxide). Our study provides guidelines for resource managers and local conservation organizations in management of ospreys and in development of habitat models that are appropriate for other piscivorous and marsh-nesting birds.