Control of the desert termiteGnathamitermes tubiformans(Buckley) in a shortgrass prairie in W Texas resulted in an improvement in the watershed value and soil-water relationships for forage plants. The percentages of>1-mm soil aggregates were greater on termite-free soils, whereas percentages of<1-mm aggregates were greater on termiteinfested soils. Organic carbon, forb production, and litter accumulation increased significantly on termite-free soils. Capillary pore space was normally higher in termite-free soils, while non-capillary pore space was normally higher in termite-infested soils. Termite control had no effect on total pore space, hydraulic conductivity, and bulk density in the soil studied. Rainfall infiltration was greater on termite-free soils after the 1st 15 min of a simulated rainstorm. Runoff and sediment load were greater on termite-infested rangeland than on termite-free rangeland. Evapotranspiration was greater on termite-free soils during a 7-day period following rainfall application. However, termite-free soils retained more moisture during dry periods than termite-infested soils.