The effects of two dams on the behavioral and attitudinal patterns of Santiam residents are studied. The development of the dams from preconstruction through construction to postconstruction provided the background for the environmental and technical changes being studied. Data on these changes in relation to the local socio-cultural system were gathered both by standard research methods and special anthropological techniques. The degree of acceptance of the water system to innovation and change was found to be related to the position of the observer in the socio-cultural system and the relation of larger similar systems. Lack of articulation and planning between various elements of the larger socio-cultural system restricts full development of benefits. Full benefits in the total water resource development process were found to be dependent on seeking consumer values and actions as inputs in the process, thus calling for the added dimension of social accounting in all phases of water. (WRSIC abstract)