The major purpose of this paper is to explore the potential value of benefit-cost evaluation for stormwater quality management decisions at a local level. A preliminary benefit-cost analysis (BCA) screening method is used for maximum extent practicable (MEP) analysis, identifying promising management practices, and identifying societal and economic tradeoffs for local stormwater problems. Ballona Creek, a major urban storm drain in Los Angeles, California, USA, is used to illustrate the practicality of the benefit-cost evaluation. The Ballona Creek example demonstrates the economic limits of stormwater management in an urban region and attests to the value of coordinated basinwide management compared to uncoordinated management by individual landowners. Evaluation results suggest that in urban areas, the benefit of stormwater quality improvements might be far greater if accompanied by comprehensive redesign of drainage networks and neighboring land uses. In this case, benefit-cost analysis is found to be useful for evaluating and understanding stormwater management alternatives despite the uncertainties in characterizing stormwater quality and the effects of stormwater management on improving receiving water quality.