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water table (Smith 1983). This trend has led to a loss of as much as 83% of our former riparian communities and their associated carrying capacities in southwestern Wyoming (Shute 1981). The primary problems confronting habitat recovery throughout much of southwestern Wyoming are the generally adverse physical and climatic condi- tons present, which make habitat recovery in a cold desert, gully-cut stream system difficult. Secondly, government-wide funding reductions and manpower limitations have precluded the use of traditional labor and capital-intensive artificial, in-stream solutions for moderate to severe drainage problems, which can range from $3,000 to $100,000 per site. A more ecologically sound and fiscally acceptable approach is needed in light of present and antici- pated funding levels. A third drawback has been the absence of larger-sized materials, notably aspen, at the lower elevations for building stable, structurally sound beaver dams. Historically, throughout the downstream reaches of both study streams, beaver dams have been subject to yearly wash- outs resulting from high spring flows over structurally weak willow/sage- brush dams. It has been demonstrated in Oregon that riparian habitats can be signigi- cantly improved through natural, riparian system recovery processes simply by resting the area from livestock use (Winegar 1977). We felt certain that habitat recovery would commence naturally if the study areas could be rested as well. We also wanted to determine whether this recovery process could be enhanced if we enlisted the services of Nature's engineer, the beaver. The intent of the study is not to create habitat for the beaver. The intent has been and continues to be to improve riparian and aquatic wildlife habitats, using the beaver as a management tool to that end. While consider- able work has been done identifying beaver habitat requirements and life history data, little has been done to determine if the beaver can be used to stabilize and improve riparian habitats in poor and declining conditions, especially in areas adverse to beaver colonization. Fortunately, the beaver is a remarkably adaptable creature. In the spring of 1981 a study project in riparian habitat restoration was initiated on two perennial streams, Currant Creek and Sage Creek. In these project sites, we were faced with little overall remnant willow root stock, heavy winter livestock grazing, a general loss of streambank stability, and a severely lowered water table as compared with historical accounts of the area. Annual rest from livestock use was required for riparian community recovery. This was accomplished on Currant Creek by constructing a 20 acre livestock exclosure using a 5,000 volt, solar powered electric fence, which has proven to be a very effective method for providing rest to both riparian and upland habitats. As a function of the rest treatment, initial stream- bank stabilization and vegetative recovery were. well underway during the first season. In 1981 and 1982, nuisance beaver were livetrapped on private lands several miles upstream from the exclosure on Currant Creek and reloacted to specific sites within the exclosure where habitat recovery was desired (Apple 1982, 1983). Since beaver eat forbs, grasses, sedges, and other aquatic and riparian plants during the summer months (Northcott 1971, Lahti 1974), we were able to relocate the animals to the study area before complete willow recovery was achieved. 30