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Streambank erosion can be a significant portion of overall erosion dynamics in the watershed. In the current research the erosion dynamics of Cedar Creek watershed located in North-Central Texas has been studied. Cedar Creek Reservoir is a major water supply reservoir with a storage capacity of over 679,200 ac. feet. It is one among the five major drinking water reservoirs owned and operated by Tarrant Regional Water District that supplies raw water to approximately 1.6 million people. Sediment and nutrient loading into the reservoir has been a major source for algae blooms that threatens the drinking water quality. Hence, as a precursor to developing a TMDL, a pollutant source assessment study was undertaken to identify nutrient and sediment hot spots within the watershed area. Lake sedimentation survey, field/stream channel survey, historical analysis using aerial photographs and modeling the basin with the SWAT model were conducted to study the erosion dynamics in the watershed. The field survey and model study showed that streambank erosion contributes up to 30% of total annual sediment load into the lake. Channel best management practice simulation using the calibrated model show that a comprehensive/holistic approach is needed to reduce streambank erosion.