The Atlantic rainforest is one of the most endangered ecosystems of our planet, this once huge forest area presents only 8% of its original distribution and need special attention in terms of the comprehension of its functioning as a mean to improve conservation goals. In this context, the present study contributes to increase the quantity of studies carried out in this region aimed to describe the hydrological functioning and the nitrogen dynamics of a small catchment covered by Atlantic rainforest sited on north coast of Sao Paulo State, Brazil. To reach these goals, hydrological processes such as surface runoff, groundwater, streamflow, precipitation, net precipitation, soil water storage at 0,15, 0,30, 0,50 and 0,90 m, water table fluctuations, were monitored during two years (2008 and 2009). Aiming to clarify soil hydrological processes the soil saturated hydraulic conductivity was measured in the field at the depths of water storage measurements using a constant head permeameter. In addition, a flow injection system was used to determine inorganic (N-NO 3 and N-NH 4 +) concentrations in the water of these hydrological processes. For organic nitrogen calculations, total dissolved nitrogen was determined by Total Organic Carbon Analyser. For 2008, the annual precipitation (P) was 1716 mm, being 33% intercepted by the forest canopy. The remaining 67% reached the soil surface. The annual water yield (Q) was 681 mm and the runoff coefficient was 40% of annual rainfall being the rest, 1035 mm, lost as evapotranspiration. For 2009, annual precipitation was 2009, a value 60% higher than in 2008. Of this amount, 32% was intercepted by forest and 68% reached the forest floor. Runoff coefficient was 48% of annual rainfall and the difference between these processes was lost as evapotranspiration. The predominance of low intensity rainfall (0-5 mm h-1) provide basis to infer that most rainfall events infiltrate the soil because Ksat at 0,15 m always exceeds this rainfall rates. In this way, very low surface runoff coefficients were calculated from the plots. For nitrogen, the results of inorganic nitrogen concentrations showed very low values in all hydrological processes. The rainfall input of nitrogen in 2008 was 3,79 kg ha-1 yr-1 and output by streamflow was 0,67 kg ha-1 yr-1. Calculations show a net gain of 3,12 kg ha-1 yr-1. For 2009, the net gain was about 1,39 kg ha-1 yr-1. Annual rainfall input was estimated as 1,84 kg ha-1 yr-1 and nitrogen streamflow outputs was 0,45 kg ha-1 yr-1. From these results, the following conclusions can be drawn: (a) baseflow is the main source of water for the annual water yields. Despite the fact of higher annual precipitation in 2009, interception losses as well as surface runoff and evapotranspiration maintained the same values. For nitrogen, low deposition rates (inputs) as well as low outputs via streamflow demonstrate that the forest within the watershed presents a conservative nitrogen cycle. Except for net precipitation and surface runoff, organic nitrogen predominated again...