This paper summarizes the results from the first 3 years of a 5-year cost-effectiveness study of the U.S. Geological Survey streamgaging 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 32 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 stations of the 3,493 stations analyzed. In the third step of the analysis, relationships were developed between the accuracy of the streamflow records and the operating budget. The weighted standard error for all stations, with current operating procedures, was 19.9 percent. By altering field activities, as determined by the analyses, this could be reduced to 17.8 percent. The existing streamgaging networks in four Districts were further analyzed to determine the impacts that satellite telemetry would have on the cost effectiveness. Satellite telemetry was not found to be cost effective on the basis of hydrologic data collection alone, given present cost of equipment and operation.This paper summarizes the results from the first 3 years of a 5-year cost-effectiveness study of the U. S. Geological Survey streamgaging 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 32 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 stations of the 3, 493 stations analyzed. In the third step of the analysis, relationships were developed between the accuracy of the streamflow records and the operating budget. The weighted standard error for all stations, with current operating procedures, was 19. 9 percent. By altering field activities, as determined by the analyses, this could be reduced to 17. 8 percent. Additional study results are discussed.