Highly acidic contaminated water is moving through a shallow aquifer and interacting with streams near Globe, Arizona. Dissolved concentrations reach 3,000 mg/L iron, 150 mg/L copper, and 16,400 mg/L total dissloved solids; pH is as low as 3. 6. Samples from 16 PVC-cased observation wells include uncontaminated, contaminated, transition, and neutralized waters. Chemical reaction with sediments and mixing with uncontaminated water neutralizes the acidic water. The reactions form a transition zone where gypsum replaces calcite and most metals precipitate. Ferric hydroxide also precipitates if sufficient oxygen is available. Abundant gypsum crystals and ferric hydroxide coatings have been recovered from well cuttings. Large sulfate concentrations produce sulfate complexes with many metals that inhibit removal of metals from solution.