We studied the water quality of Embalse del Rio Tercero Reservoir after the building of a nuclear power plant, completed in 1983, and compare the results with available information for the period before the plant started operating. At present, the reservoir is eutrophic. It has a period of stratification in spring and summer and it is fully mixed in fall and winter. Seasonal variations are large. Diatoms are dominant during homothermous periods, while primary production seems to be light-limited. Aphanocapsa sp. is dominant during periods of stratification, at the end of which nutrient exhaustion (specially inorganic nitrogen) limits production. At present, mean inorganic nitrogen, total phosphorus and chlorophyll concentrations are lower than before the power plant started operating. It is suggested that this improvement in water quality is due to a change in water management. Extensive drawdown of the reservoir was allowed before 1983. Since large volumes of water are required for cooling purposes in the nuclear power plant, water level fluctuations have strongly diminished. Changes of colonization in Elodea sp. and fish composition have also been observed.