This assessment addresses water quantity, quality, fish use and physical habitat in the False Bay Watershed. A technical report (attachment #134620) summarizes all portions of this watershed assessment. The primary focus of the work is on water quantity including a water right and flows assessment. The primary causes of low flows are withdrawals associated with water rights for Friday Harbor, water rights on Zylstra Lake and other modifications to stream hydrology. Low flows can result in higher water temperature, decreases in rearing habitat and low levels of dissolved oxygen. San Juan Valley Creek is one of two streams in the watershed known to support salmon. Restoring and protecting small stream, nearshore and estuary habitat in the San Juan Islands is a critical element of the Puget Sound Salmon Recovery Plan. Flow variation, sediment and nutrient transport are all critical to the health of estuaries in the San Juan Islands. As the largest watershed in the San Juan’s, False Bay is vital part of recovery feeding grounds for Chinook and other species. The physical habitat analysis includes assessing physical habitat constraints to stream flows in the watershed including ditching, diversions, channelization and ponding. The water quality section of the report focuses on toxic contaminants.