A water budget for two sub-catchments of the Clare Valley indicates that inputs of water from rainfall are at least matching outputs via stream flow, groundwater pumping and lateral groundwater flow out of the aquifer. Preliminary results from a first-order salt balance suggest that salt is probably being exported from the catchments, and that the rate of exportation may be up to 25 times the rate of importation. This is most likely the result of clearing of native vegetation (80-100 years ago) which has led to increased recharge and flushing of salt from the aquifer. Preliminary calculations based on a groundwater vs surface-water chloride mass balance and bore hydrographs also reveal that, of the total annual stream flow in the Eyre Creek catchment, < 3 mm/yr is derived from groundwater discharge.