The objectives for this study include: 1) characterize the macroinvertebrate fauna prior to restoration using the BACI (Before/After, Control/Impact) sampling design; 2) examine the short-term (one-year) effects on the faunal assemblages to determine if restoration influences macroinvertbrate and fish communities after restoration. Also examine the effects along a downstream gradient from the restoration site; and 3) conduct long-term monitoring to determine the effects on macroinvertebrate and fish communities in the stream. Currently, we are conducting long-term monitoring of the study sites. Five sampling sites were established: above restored area (control site), lower and upper impact sites (two sites within project area), Below 100 and Below 2500 meters (two sites downstream of the project area). Using a modified Hess Sampler, macroinvertebrates (n=6 replicate samples/site) were collected from each site. Macroinvertebrates were identified to the generic level and analyzed using several metrics such as, Shannon and Simpson biodiversity indices, EPT, Functional Feeding Group analyses to evaluate ecosystem/community attributes among all sites from July 2002 - April, 2004. Stream restoration, especially when the restoration involves moving the stream channel, may in fact traumatize the macroinvertebrate community within the project area as reflected in diversity index calculations. We observed diversity in the project area to exhibit a lag-time in recovery compared with other sites. Because there was an increase in riffle habitat as well as modification in flow regime, which in turn may influence the preservation of habitat heterogeneity within these riffle zones, macroinvertebrate diversity may respond according to this improvement in habitat.