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Because of the rapid urban development in recent years, hydrologic problems associated with urban watersheds have gained importance. Large sums of money are being spent for the design of urban drainage systems based upon inadequate procedures for predicting peak runoff rates. In this report a procedure is proposed for predicting peak runoff rates from small urban and rural watersheds based upon measurable storm and watersheds characteristics. The technique was tested for a number of runoff events on the Boneyard Creek watershed at Urbana, Illinois, and the results of this test are included. The procedure will be particularly useful for estimating runoff rates from small ungaged drainage areas, and thus will be directly applicable to both design and water management problems.