We examined benthic condition in three small watersheds in the Chesapeake Bay. Characterization of benthic condition was based on the combined measurements of benthic fauna, sediment toxicity, and sediment contaminant loads. Significant differences between watersheds were detected for sediment contaminant concentrations and water quality. The intensity of benthic impairment was greatest in the river surrounded by the most developed watershed. Spatial patterns of benthic condition were detected within all three watersheds. In contrast to current, intense focus on nutrient pollution in the Chesapeake Bay, qualitative comparison of our findings to land-use patterns supports findings of other studies that suggest benthic condition in tributaries of the Chesapeake Bay may more closely relate to urbanization than agricultural land uses.