This report documents the results of the cost-effectiveness of the stream-gaging program in Arkansas. Data uses and funding sources were identified for the daily-discharge stations. All daily-discharge stations were found to be in one or more data use categories, and none were candidates for alternate methods which would result in discontinuation or conversion to a partial record station. The cost for operation of daily-discharge stations and routing costs to partial record stations, crest gages, pollution control stations as well as seven recording ground-water stations was evaluated in the Kalman-Filtering Cost-Effective Resource allocation (K-CERA) analysis. This operation under current practices requires a budget of $292,150. The average standard error of estimate of streamflow record for the Arkansas District was analyzed at 33 percent.