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Agricultural nonpoint source pollution (NPS) is a significant problem in the Minnesota River Basin. Policy makers increasingly demand information on the economic and environmental implications of alternative production practices to inform policy formulation. Establishment of TMDLs for specific stream stretches is an important policy decision, with significant economic and political ramifications. Pollution from agricultural sources depends both on production practices and site conditions (soil type, hydrological characteristics, etc). Identifying and measuring linkages between production decisions, profits, and water quality is a challenging area of research given the dual nature of the problem. Effective TMDLs must reflect this dual nature. This talk examines the linkages between producer decisions, site characteristics, and water pollution by integrating agronomic, hydrologic, and economic models of farm-level processes focusing on tillage practices and sediment loads. Conventional and conservation tillage practices are evaluated. The analysis relies on detailed crop production and water quality data for a watershed located in the Lower Minnesota River Basin.