Techniques for management of drainage basins that use water budgets to balance available water resources with actual or anticipated water use require accurate and precise estimates of basin withdrawals, interbasin transfers of freshwater, unaccounted-for use, water use, consumptive use, inflow and infiltration, basin return flow, and interbasin transfers of wastewater. Frequently, interbasin transfers of freshwater and wastewater are not included in basin water budgets because they occur within public water-delivery and wastewater-collection systems. A new 10-step method was developed to improve estimates of inflow and infiltration and interbasin transfers using readily available statewide data. The accuracy and precision of water-use estimates determined by this method are improved through careful application of coefficients for small users and the use of metered values for large users. The method was developed and tested with data for the Ten Mile River Basin in southeastern Massachusetts. This report uses examples from the basin to illustrate each step of the method.