The cost effectiveness of the stream-gaging program in South Carolina was documented for the 1983 water yr. Data uses and funding sources were identified for the 76 continuous stream gages currently being operated in South Carolina. The budget of $422,200 for collecting and analyzing streamflow data also includes the cost of operating stage-only and crest-stage stations. The streamflow records for one stream gage can be determined by alternate, less costly methods, and should be discontinued. The remaining 75 stations should be maintained in the program for the foreseeable future. The current policy for the operation of the 75 stations including the crest-stage and stage-only stations would require a budget of $417,200/yr. The average standard error of estimation of streamflow records is 16.9% for the present budget with missing record included. However, the standard error of estimation would decrease to 8.5% if complete streamflow records could be obtained. It was shown that the average standard error of estimation of 16.9% could be obtained at the 75 sites with a budget of approximately $395,000 if the gaging resources were redistributed among the gages. A minimum budget of $383,500 is required to operate the program; a budget less than this does not permit proper service and maintenance of the gages and recorders. At the minimum budget, the average standard error is 18.6%. The maximum budget analyzed was $850,000, which resulted in an average standard error of 7.6 %. (Author 's abstract)