The goal of this study was to determine how effective are watershed rehabilitation efforts at improving receiving water conditions at the watershed scale? The study was designed with a 10-year timeframe, this report summarizes the data collected in year 3 of the study. Seven streams within the City of Redmond were monitored for flow, water quality, sediment quality, habitat, and B-IBI. Two of the streams are in a forested preserve and functioned as Reference watersheds, two streams are in highly impacted basins and served as Control basins, the remaining three streams are also in impacted basins, but intensive watershed management actions are planned for these Application basins in an effort to restore stream function and habitat quality. In year 3 of this study many of these watershed management actions have not yet been initiated, so this report serves to present baseline data for the 10-year study.