Expanded coal production and conversion in the Yampa River basin , Colorado and Wyoming, may have substantial impacts on water resources, environmental amenities, and socioeconomic conditions. Preliminary results of a 3-year basin assessment by the U.S. Geological Survey are given for evaluation of surface- and ground-water resources using available data, modeling analysis of waste-load capacity of a Yampa River reach affected by municipal wastewater-treatment plant effluents, and semiquantitative descriptions of ambient air- and water-quality conditions. Aspects discussed are possible constraints on proposed development due to basin compacts and laws regulating water resources, possible changes in environmental-control regulations, and policies on energy-resource leasing and land use that will influence regional economic development. (Woodard-USGS)