Trihalomethanes (THMs) are contaminants of drinking water produced by the reaction between chlorine and natural organic matter. Determination of THM formation potential (THMFP) is a means of quantifying precursor abundance in waters from diverse sources. THMFP in river water entering and leaving Taylorsville Lake (Ky.) was measured to assess internal and external sources of THM precursors. THMFP in Taylorsville Lake was largely determined by watershed inputs. External inputs from tributary streams accounted for 80% of reservoir THMFP, and internal processes resulted in a net generation of 20%. Chlorophyll concentrations in the main tributary (Salt River) were comparable to those measured in Taylorsville Lake, suggesting that algal production in source waters may be important in regulating precursor supply to the reservoir. The highest THMFP was found in hypolimnetic samples, and peak export from the reservoir occurred during fall turnover, suggesting that decomposition of sedimenting organic matter both delayed and enhanced precursor release.