Beaver (Castor canadensis) influence stream ecosystems through their wood cutting and dam building activities. To quantify this influence we have used measured rates of nitrogen dynamics to construct a nitrogen budget for a section of a second order stream in eastern Québec and a beaver dam in that stream. The budget demonstrates the importance of sediment accumulations and an expanded wetted area to the annual nitrogen economy and to pathways of nitrogen cycling. Major changes after impoundment (per unit area) include a reduction in allochthonous nitrogen and an increase in nitrogen fixation by sediment microbes. Overall, the beaver-modified section accumulated ∼103 times more nitrogen than before alteration. The ecosystem implications of beaver activity suggest that current concepts of patterns and processes in running waters require modification.