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reduction in the need for hatchery-reared trout, and further protection of these resources from WD. Enhancement and protection of coldwater resources through water quality/quantity programs and habitat improvement is a vital component of DOW programs, but increased efforts in these areas represent a long-term commitment. Habitat improvement cannot enhance the productive capacities of Colorado aquatic resources quickly enough to compensate for fishing recreation losses. Demand Natural reproduction from wild trout populations provides fish for anglers, but even with special angling regulations (catch-and-release, size limits, restricted bag limits, etc., which allow managers to recycle fish), the DOW is still not able to meet angler "demand" without supplemental hatchery production. Demand for hatchery-raised catchable trout cannot be estimated using an economic model because the public will "consume" all catchable trout under the current license fee, year-round season, and eight-fish bag limit. Demand for catchable trout will always exceed supply under these conditions. Demand includes the desire for a commodity, as well as the ability or willingness to pay for it. A major premise of this report is that a true assessment of the demand for hatchery-reared fish should help determine the DOW's hatchery production goals. The DOW has tried various methods to estimate demand, including the present Categorization System. Fishing recreation is important to local and state economies (more than $900 million annually), and it is estimated that hatchery-reared fish support 80% of the state's coldwater angling recreation days (Deloitte and Touche 1995). However, to manage our fisheries effectively, we need to know more about (1) what people want, and how much they are willing to pay (demand); (2) factors contributing to angler satisfaction; (3) management program objectives; and (4) interactions among management variables like catch rate, angler use, stocking rate, and regulations. Hatchery Production The hatchery system has operated with 89.4 permanent personnel and 14 temporary employees and an annual budget of $7.56 million, including capital construction projects. The system consists of 14 coldwater units, two warmwater facilities, one combination cold/warmwater hatchery, and a planting base. Support services include a fish health section and research hatchery. Eight of the 14 coldwater units have been found positive for WD. Information is provided in Chapter VI for each individual hatchery concerning costs, potential to increase production of WD- fish, alternatives to rear different species, and opportunities to convert production units to other functions such as research or youth fishing areas. Most of the information was provided by the superintendents of the various hatcheries. VII