Water resources programs and activities of the U.S. Geological Survey in Montana consist principally of hydrological data collection and local, areal, or statewide hydrologic investigations. The work is supported by direct Federal funding, by transfer of funds from other Federal agencies, and by joint funding agreements with State or local agencies. The Montana District of the Geological Survey 's Water Resources Division conducts its hydrologic work through a headquarters office in Helena, and field offices in Helena, Billings, Fort Peck and Kalispell. This report describes the eighteen projects funded for fiscal years 1988 and 1989. In addition, it describes the operations of the Montana District, water conditions during water year 1988, activities in addition to regular programs, sources of publications and information, and lists reports published or released during the preceding 5 years. (USGS)