The paper presents results related to water balance of the Oyan Lake in the North West in Nigeria. The catchment covering an area of 9000 km2 includes a small dam called Oyan dam having an effective watershed area of 40 km2 with a gross storage of 270 million cubic meters. Hydrology of the area was characterized on the basis of land use, rainfall, temperature, evaporation, evapotranspiration, and runoff using meteorological data. Different methods like rainfall coefficient method is used to determine monthly distribution of rainfall including rainy and dry months; Penman method to calculate evaporation from the reservoir; Thornthwaite method and Thornthwaite water balance model to determine potential and actual evapotranspiration; and runoff coefficient method to estimate runoff. The catchment is characterized by one rainy season and two dry seasons during the year. The rainy season has five months duration and dry season seven months. The mean annual rainfall of the catchment is 1015.09 mm, out of which rainy season accounts for 96.1% and the dry season for 3.9%. The total annual water loss by evaporation from the reservoir is 1178.5 mm. The mean annual actual evapotranspiration for the catchment is 899.3 mm. The mean annual runoff generated from the catchment is estimated to be 822.2 million cubic meters. The amount of water that percolates into the ground in the catchment as groundwater is estimated to be about 219.9 million cubic meters, and the same at the reservoir site is 826.9 million cubic meters. The total amount of water which is actually available to recharge the groundwater within the catchment is 1046.8 million m3.