This study uses the hedonic price method to investigate the effect of five water quality parameters on the sale price of single-family residential properties in two urbanized watersheds in the Portland, Oregon-Vancouver, Washington metropolitan area. Water quality parameters include E. coli or fecal coliform, which can affect human health, decrease water clarity and generate foul odors; pH, dissolved oxygen, and stream temperature, which can impact fish and wildlife populations; and total suspended solids, which can affect water clarity, aquatic life, and aesthetics. Properties within ¼ mile, ½, mile, one mile, or more than one mile from Johnson Creek are estimated to experience an increase in sale price of 13.71%, 7.05%, 8.18%, and 3.12%, respectively, from a one mg/L increase in dissolved oxygen levels during the dry season (May–October). Estimates for a 100 count per 100 mL increase in E. coli during the dry season are −2.81% for properties within ¼ mile of Johnson Creek, −0.86% (½ mile), −1.19% (one mile), and −0.71% (greater than one mile). Results for properties in Burnt Bridge Creek include a significantly positive effect for a one mg/L increase in dissolved oxygen levels during the dry season for properties within ½ mile (4.49%), one mile (2.95%), or greater than one mile from the creek (3.17%). Results for other water quality parameters in Burnt Bridge Creek are generally consistent with a priori expectations. Restoration efforts underway in both study areas might be cost justified based on their estimated effect on property sale prices.