A wasteload allocation survey done for the town of Knight in 1980 did not indicate any negative effects on receiving waters. Cemetery Creek is considered a Class II trout fishery for its entire length. A point source evaluation in 1991 determined that the stream continues to support its classified uses and current effluent standards appear to be protective. Cemetery Creek occurs about a half mile above the confluence with Alder Creek. Downstream of this confluence, the stream corridor is wild and thickly wooded.
Alder growth dominates streambank vegetation and in many areas forms a thick, tangled canopy.
Water chemistry taken at sample sites on Cemetery Creek showed that the levels of dissolved oxygen and five-day biochemical oxygen demand were not of concern. The insect community found in the stream indicated excellent water quality with no apparent organic pollution problems. The insect community included great diversity and species sensitive to pollution. The stream habitat rated as good to excellent, with the lower scores coming from pool and ripple depths related to the stream's small size and hard bottom. This tributary to the Potato River is considered Class II trout waters.