The Wood River watershed drains forest land in the Cascade Mountains southeast of Crater Lake and the Wood River Valley. The drainage around its headwaters is forest county dominated by ponderosa pine and lodgepole pine with some quaking aspen in meadow lands. Annie Creek drains steep alpine forest country. From near its headwaters to the border of Crater Lake National Park, the creek has cut a deep canyon through the forest that is a well known feature within the park. After leaving the park, Annie Creek flows into flat meadow lands on the western border of Sun Pass State Forest. Annie Creek also feeds several irrigation canals including Scott Ditch, Shattuck Ditch, Loosely-Streeter-Cardwell Ditch, and Copeland Lateral Ditch. Excess flow from these canals is returned to Annie Creek and the Wood River. The lower Wood River flows through pasture land and ultimately opens into a large marsh before draining into Agency Lake.