This chapter presents a study of the Diguillín basin in central Chile where geology is dominated by the Nevados del Chillan volcanic complex. The headwater of the basin has two watersheds: Renegado creek and Alto Diguillín. The hydrogeology was studied using field surveys, streamflow gauging, environmental tracers, and a hydrological model. Surface water balance does not fit for both watersheds because there is a deficit/excess of superficial runoff. Renegado soils are predominantly sands over a basement composed of fractured rock; infiltration of rain and snowmelt predominates over surface runoff, resulting in about 5 m 3 /s of depth groundwater that flows to the Diguillín River, discharging in a cluster of springs located 3 km downstream of the surface connection. Therefore, drinking water availability for the communities located at the Renegado watershed is limited to some springs that are located around the valley. There is a significant expansion of second home construction in the area of the Renegado watershed; because of its skiing and hot springs, it is a major tourism center. Due to the extensive use of septic tanks, located above the highly permeable soils that overlie the fractured rock aquifer, there is concern about how water quality may be affected.