Canyon Creek, a North Fork Nooksack River tributary, provides critical spawning habitat for ESA listed North Fork early chinook, steelhead, and bull trout. Upstream projects (e.g., USFS road drainage improvements/abandonment, landslide stabilization, and in-stream LWD placement) were done in response to three sediment-laden floods in 1989 and 1990. The floods damaged habitat throughout the watershed and destroyed four streamside homes in the Glacier Springs development on Canyon Creek's alluvial fan. A 2400' long armored levee was constructed in 1994 in response to landowner demands for flood protection. The levee now constrains the creek to the eastern margin of the alluvial fan, limiting stream processes and habitat functions. Blasting as part of the 1994 project 'fixed' the channel into a bedrock section ~ 700' upstream of the confluence with the North Fork. This section can limit access to 4.1 miles of salmonid habitat depending on salmonid species and flow level. A cquisition and removal of structures on multiple key properties has reduced flood risks while creating habitat restoration opportunities for levee removal or setback. Mulitple restoration options for the lower 0.9 miles were identified, alternatives were analyzed, and a preferred option was selected. Project designs were prepared for the preferred option (Option 'A') the removal of the downstream 525' of the levee and manmade flood plain obstructions, mitigation of flood hazard to SR 542, and modifications of a drop in the barrier falls to provide long-term passage, improve habitat structure and promote recovery of habitat forming processes. The design report describes the flood history, geomorphology, and salmon habitat limitations related to the levee and bedrock reach and provides an evaluation of the effects of the preferred habitat restoration option on the transfer of existing flood risks to Glacier Springs and SR 542. Individual members of the Glacier Springs community and the Glacier Springs Property Owners Association were provided with information and opportunities to provide input and suggest changes to the options considered through individual and board meetings and presentations to the annual membership meeting held each fall.