In 1990, field studies of water quality and stream macroinvertebrate communities were initiated in Sandia Canyon at Los Alamos National Laboratory. The studies were designed to establish baseline data and to determine the effects of routine discharges of industrial and sanitary waste. Water quality measurements were taken and aquatic macroinvertebrates sampled at three permanent stations within the canyon. Two of the three sample stations are located where the stream regularly receives industrial and sanitary waste effluents. These stations exhibited a low diversity of macroinvertebrates and slightly degraded water quality. The last sample station, located approximately 0.4 km (0.25 mi) downstream from the nearest wastewater outfall, appears to be in a zone of recovery where water quality parameters more closely resemble those found in natural streams in the Los Alamos area. A large increase in macroinvertebrate diversity was also observed at the third station. These results indicate that effluents discharged into Sandia Canyon have a marked effect on water quality and aquatic macroinvertebrate communities.