Located mostly in Sevier and Piute counties, Otter Creek provides municipal, industrial, and agricultural water to several thousand downstream water users. However, the watershed is also a source of nitrate and nitrites, phosphorus, sulfate, sediment, and coliform to the Sevier. Most of the riparian areas along Otter Creek were in poor condition before the restoration project began, and while some riparian areas have greatly improved, much of the watershed was not affected by the restoration and remains degraded. Otter Creek watershed encompasses 240,000 acres. It is about 39 miles long and 12 miles wide, and drains into the East Fork of the Sevier River.
Otter Creek is the main tributary to the East Fork, with six to eight tributaries feeding it.
The loss of vegetation in the riparian areas and on rangeland increases erosion, which is aggravated by heavy grazing. About 38,000 acres of highly eroded land within the watershed need special treatment to stabilize vegetative cover. This area contributes up to 18 tons of sediment per acre per year. Ongoing efforts will reduce rangeland erosion and stabilize streambanks to prevent continued erosion. Much of the worst streambank erosion along Otter Creek and many other Utah rivers and streams took place a decade ago during the severe floods in 1983 and 1984.