Analysis of the stream gaging program in Indiana was divided into three phases. The first phase involved collecting information concerning the data need and the funding source for each of the 173 surface water stations in Indiana. The second phase used alternate methods to produce streamflow records at selected sites. Statistical models were used to generate stream flow data for three gaging stations. In addition, flow routing models were used at two of the sites. Daily discharges produced from models did not meet the established accuracy criteria and, therefore, these methods should not replace stream gaging procedures at those gaging stations. The third phase of the study determined the uncertainty of the rating and the error at individual gaging stations, and optimized travel routes and frequency of visits to gaging stations. The annual budget, in 1983 dollars, for operating the stream gaging program in Indiana is $823,000. The average standard error of instantaneous discharge for all continuous record gaging stations is 25.3%. A budget of $800,000 could maintain this level of accuracy if stream gaging stations were visited according to phase III results. A minimum budget of $790,000 is required to operate the gaging network. At this budget, the average standard error of instantaneous discharge would be 27.7%. A maximum budget of $1 ,000,000 was simulated in the analysis and the average standard error of instantaneous discharge was reduced to 16.8%. (Author 's abstract)