Two small headwater lake basins that receive similar amounts of acidic atmospheric deposition have significantly different lake outflow pH values; pH at Panther Lake (neutral) ranges from about 4.7 to 7; that at Woods Lake (acidic) ranges from about 4.3 to 5. A hydrologic analysis, which included monthly water budgets, hydrograph analysis, examination of flow duration and runoff recession curves, calculation of ground-water storage, and an analysis of lateral flow capacity of the soil, indicates that differences in lakewater pH can be attributed to differences in the ground-water contribution to the lakes. A larger percentage of the water discharged from the neutral lake is derived from ground water than that from the acidic lake. Ground water has a higher pH resulting from a sufficiently long residence time for neutralizing chemical reactions to occur with the till. The difference in ground-water contribution is attributed to a more extensive distribution of thick till (