Urban and resort development and drought conditions have placed increasing demands on the surface-water and groundwater resources of the Eagle Creek Basin, in southcentral New Mexico. The Village of Ruidoso, New Mexico, obtains 60-70 percent of its water from the Eagle Creek Basin. The village drilled four production wells on Forest Service land along North Fork Eagle Creek; three of the four wells were put into service in 1988 and remain in use. Local citizens have raised questions as to the effects of North Fork well pumping on flow in Eagle Creek. In response to these concerns, the U.S. Geological Survey, in cooperation with the Village of Ruidoso, conducted a hydrologic investigation from 2007 through 2009 of the potential effect of the North Fork well field on streamflow in North Fork Eagle Creek. Mean annual precipitation for the period of record (1942-2008) at the Ruidoso climate station is 22.21 inches per year with a range from 12.27 inches in 1970 to 34.81 inches in 1965. Base-flow analysis indicates that the 1970-80 mean annual discharge, direct runoff, and base flow were 2,260, 1,440, and 819 acre-ft/yr, respectively, and for 1989-2008 were 1,290, 871, and 417 acre-ft/yr, respectively. These results indicate that mean annual discharge, direct runoff, and base flow were less during the 1989-2008 period than during the 1970-80 period. Mean annual precipitation volume for the study area was estimated to be 12,200 acre-feet. Estimated annual evapotranspiration for the study area ranged from 8,730 to 8,890 acre-feet. Estimated annual basin yield for the study area was 3,390 acre-ft or about 28 percent of precipitation. On the basis of basin-yield computations, annual recharge was estimated to be 1,950 acre-ft, about 16 percent of precipitation. Using a chloride mass-balance method, groundwater recharge over the study area was estimated to average 490 acre-ft, about 4.0 percent of precipitation. Because the North Fork wells began pumping in 1988, 1969-80 represents the pre-groundwater-pumping period, and 1988-2009 represents the groundwater-pumping period. The 5-year moving average for precipitation at the Ruidoso climate station shows years of below-average precipitation during both time periods, but no days of zero flow were recorded for the 11-year period 1970-80 and no-flow days were recorded in 11 of 20 years for the 1988-2009 period. View report for unabridged abstract.