The U.S. Geological Survey has been collecting water resources data in Nevada since 1890. Most of the projects in the current Nevada District program can be classified as either basic-data acquisition (about 25%) or hydrologic interpretation (about 75 %). About 52% of the activities are supported by cooperative agreements with State and local agencies. Technical projects supported by other Federal agencies make up about 23% of the program, and the remaining 25% consists of data collection, research, and interpretive projects supported directly by the U.S. Geological Survey. Water conditions in Nevada during the 4 years covered by this report were by no means average, with 1 very wet year (1986) and 2 very dry years (1987-88). The major water resources issues include: water allocation in the Truckee-Carson River basin; irrigation return flow contamination of the Stillwater Wildlife Management Area; effects of weapons testing at the Nevada Test Site; assessment of potential long-term impacts of the proposed Yucca Mountain Nuclear Waste Repository; and drought. Future water-resources issues in Nevada are likely to center on water supply for and the environmental effects of, the rapidly growing population centers at Las Vegas, Reno, and Elko; impacts of operations at the Nevada Test Site; management of interstate rivers such as the Truckee and Colorado Rivers; hydrologic and environmental impacts at heavily mined areas; and water quality management in the Lake Tahoe Basin. (Thacker-USGS-WRD)