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The objectives of this study are to investigate flood damages along Upper Penitencia Creek in Santa Clara County, California; to identify potential alternatives for alleviating these damages while minimizing adverse impacts on fishery and wildlife resources; and to determine whether there is a Federal interest to proceed into the Feasibility Study Phase. The study area includes approximately three square miles of the Upper Penitencia Creek watershed which lies midway between the cities of San Jose and Milpitas. The study alternatives evaluated to alleviate flood damages include: (1) a modified floodplain with a channel bypass plan; (2) a modified floodplain with a partial bypass plan; (3) a modified floodplain with a partial bypass and a trapezoidal channel plan; and (4) a no action plan. For each of the structural alternatives three floodproofing variations were considered for 14 homes in the upstream portion of the study area. The conclusions of this Reconnaissance study indicate that Alternatives 1 and 2 can reduce flood damages along Upper Penitencia Creek. These plans are economically feasible meet the requirements of the System of Accounts and have the support of the Santa Clara Water Valley District.