The ecological effects of beaver in warm-desert streams are poorly documented, but potentially significant. For example, stream water and sediment budgets may be affected by increased evaporative losses and sediment retention in beaver ponds. We measured physical attributes of beaver pond and adjacent lotic habitats on a regulated Sonoran Desert stream, the Bill Williams River, after ???11 flood-free months in Spring 2007 and Spring 2008. Neither a predicted warming of surface water as it passed through a pond nor a reduction in dissolved oxygen in ponds was consistently observed, but bed sediment sorted to finest in ponds as expected. We observed a river segment-scale downstream rise in daily minimum stream temperature that may have been influenced by the series of ??100 beaver ponds present. Channel cross-sections surveyed before and after an experimental flood (peak flow 65 m3/s) showed net aggradation on nine of 13 cross-sections through ponds and three of seven through lotic reaches. Our results indicate that beaver affect riverine processes in warm deserts much as they do in other biomes. However, effects may be magnified in deserts through the potential for beaver to alter the stream thermal regime and water budget. ?? Society of Wetland Scientists 2011.