The Federal-State Cooperative Program is a major U.S. Geological Survey (USGS) activity for the collection, analysis, and reporting of information on the quantity, quality, and use of the Nation's water resources. The fundamental characteristic of the program is that most of the work is undertaken by the USGS through joint-funding agreements, with State, regional, and local agencies providing at least one-half the funds. The main objectives of the program are (1) to collect, on a systematic basis, data needed for the continuing determi- nation and evaluation of the quantity, quality, and use of the Nation's water resources; and (2) to appraise the availability and the physical, chemical, and biological characteristics of surface and ground water through data analysis and interpretive water-resources investigations and research. During fiscal year (FY) 1995, Cooperative Program activities were underway in offices in every State, Puerto Rico, and several territories in concert with about 1,100 cooperating agencies. In FY 1995, Federal funding of $62.1 million as matched by cooperating agencies, which also provided more than $28.2 million unmatched for a total program of about $152 million. This amounted to nearly 38 percent of the total funds for the USGS's water-resources activities. This report presents examples of FY 1995 investigations, as well as information on hydrologic data collection and water-use activities.