Watershed assessment is vital especially in the southwest because of dwindling water resources and growing demands. This watershed study focused on the upper reaches of the Sapello River that flows through the Pritzlaff Ranch in San Ignacio, New Mexico. Research was conducted in 2007 to assess baseline water quality characteristics of the upper Sapello River. The study integrated various stream health indices including chemical water quality parameters, geomorphologic characteristics, physical habitat assessment conditions, stream bed composition, as well as upland land management practices and biological integrity. Baseline data can be used to determine effects of future local thinning restoration practices while monitoring the stream's health and determining baseline water quality conditions over a ten month period, to determine whether the stream is increasing, deceasing, or maintaining in terms of overall function.