The Black Hills area of western South Dakota is a valuable resource center. The area has attracted numerous residents and industries because of the availability of mineral, timber, agricultural, recreational, and water resources. The water resources of the area have been stressed locally by increasing population, periodic drought, and development of other resources. In response to residents' concerns about these stresses on the water resources, the Black Hills Hydrology Study was initiated in 1990 as a cooperative effort among the U.S. Geological Survey, the South Dakota Department of Environment and Natural Resources, and the West Dakota Water Development District. West Dakota represents the various local and county cooperators. This report describes the purpose, scope, approach, and status of the study and presents highlights from the first project data report produced for the study.