Reelfoot Lake in northwestern Tennessee, with a surface area of 15,500 acres at normal pool elevation, is the largest natural lake in Tennessee. Over the years, the lake has become an important economic, environmental, and recreational resource to the people in the area, and to the State of Tennessee. The natural eutrophic succession rate of the lake has apparently been accelerated by land use practices within the Reelfoot Lake drainage basin during the past several decades. The potential loss of Reelfoot Lake has prompted the State to make management and restoration of the lake and its resources a priority objective. The U.S. Geological Survey entered into a cooperative study in May 1984 with the Tennessee Wildlife Resources Agency and the Tennessee Department of Health and Environment, Division of Water Management, to collect and analyze hydrologic data and prepare an annual water budget for Reelfoot Lake. The purpose of the water budget is to provide an analysis of the surface-groundwater-lake-atmospheric water relation at Reelfoot Lake. Results of the analysis can be used by lake managers to evaluate the potential effects of proposed lake management strategies upon the lake and surrounding hydrologic system. The water budget for the 12-month study period (May 1, 1984 through April 30, 1985) is presented in this report. In addition, estimates of suspended-sediment discharge from tributary streams in the Reelfoot Lake basin and an analysis of concentrations of constituents in stream-bottom material at three inflow sites are also presented. (Lantz-PTT)