This report presents water-level and water-quality data that have been collected or compiled, through water year 1998, for the Black Hills Hydrology Study. This study is a long-term coop-erative effort between the U.S. Geological Survey, the South Dakota Department of Environment and Natural Resources, and the West Dakota Water Development District (which represents various local and county cooperators). This report is the third in a series of project data reports produced for the study. Daily water-level data are presented for 71 observation wells and 2 cave sites in the Black Hills area of western South Dakota. The wells include a network of observation wells that are maintained in cooperation with the South Dakota Department of Environment and Natural Resources and are completed in various bedrock formations that are utilized as aquifers in the Black Hills area of western South Dakota. Both cave sites are located within outcrops of the Madison Limestone. Data presented include site descriptions, hydrographs, and tables of daily water levels. Annual measurements of water levels collected during water years 1995-98 from a net-work of 18 additional, miscellaneous wells are presented. These wells are part of a statewide network of wells completed in bedrock aquifers that was operated from 1959 through 1989 in cooperation with the South Dakota Department of Environment and Natural Resources. Site descriptions and hydrographs for the entire period of record for each site also are presented. Water-quality data are presented for 9 surface-water sites, 19 ground-water sites, and 30 sites that have been classified as areas of surface- and ground-water interaction in the Black Hills area. The surface- and ground-water interaction sites are further divided into three categories that include 11 loss zone sites, 8 headwater spring sites, and 11 downgradient spring sites.