Hercynian S-type granites from the southeastern Schwarzwald granite series represent cogenetic biotite-and two-mica granites. Oxygen- and hydrogen-isotope data show that hydrothermal alteration invoking isotopically light surface waters resulted in a drastic reduction in δ18O and δD and pronounced disequilibrium between the minerals. Effective water-rock ratios are calculated to be high, about 0.8 vol units. A shift in the18O/16O and the chemical composition of the fluid due to water-rock interaction is continuously traced from pure H2O with meteoric isotopic character in the deep-seated biotite granites to slightly saline water with rock-equilibrated isotopic composition in the two-mica granites at a shallower level. Substantial retrograde hydrometamorphism in the temperature range 500° to 200° C resulted mineralogically in high-temperature chloritization of biotite, and low-temperature muscovitization as well as feldspar alteration, respectively. Another result of the re-equilibration of cations is strong disturbance of the Rb−Sr system which affects measured ages and initial87Sr/86Sr values. Hydrothermal differentiation and alteration probably overlap to a very large extent magmatic differentiation processes.