Recreational use and economic impact of the Salt Caves segment of the Klamath River have been consistently understated. Various citizens and the local press have suggested about 2,000 people use this segment each year for rafting and an equal number for fishing. Representatives of Resource Management Inc. and various public officials and citizens have estimated annual revenues from the Salt Caves segment of the Klamath River at "less than $4 00,000" to "$500,000 per year". In the interest of building a broader discussion base, the following preliminary economic assessment of the Klamath River canyon has been developed. Background data and estimates are developed for rafting, fishing, and hunting. It is hoped this analysis will help support a more relevant Economic, Social, Environmental, and Energy consequences statement in the Klamath County Comprehensive Plan. Results of the economic assessment for 1986 are summarized below. River use is nearly double the reported levels, and the economic impact of the Salt Caves segment of the Klamath River is over $2.5 million annually. The river now supports 98 jobs through direct, indirect and induced effects, half of them in Oregon. Another 3 00 jobs are partially supported when Oregon and California rafting firms use the river.