Due to high unit runoff, a good storage site, and a high concentration of fall, Scenery Lake presents a favorable power site. By building a tunnel three miles long from Scenery Grove to tap Scenery Lake at elevation 900 feet and a dam to raise Scenery Lake to elevation 1020 feet, the flow of Scenery Creek can be regulated and 16,000 firm horsepower developed. No stream flow records are available on Scenery Creek but 14 years record of the flow of Cascade Creek, the adjacent drainage on the south, has been used for power estimates. A gaging station was established on Scenery Creek in September 1949, and as records become available the estimates contained in this report will require revision. A geologic examination of the dam site area at the mouth of Scenery Creek and the tunnel location along the south bank from Scenery Cove to Scenery Lake should be made before any further work is done on the project.