Digital watershed and bay polygons for use in geographic information systems were created for Rehoboth Bay, Indian River, and Indian River Bay in southeastern Delaware. Polygons were created using a hierarchical classification scheme and a consistent, documented methodology that enables unambiguous calculations of watershed and bay surface areas within a geographic information system. The watershed boundaries were delineated on 1:24,000-scale topographic maps. The resultant polygons represent the entire watersheds for these water bodies, with four hierarchical levels based on surface area. Bay boundaries were delineated by adding attributes to existing polygons representing water and marsh in U.S. Geological Survey Digital Line Graphs of 1:24,000-scale topographic maps and by dissolving the boundaries between polygons with similar attributes. The hierarchy of bays incorporates three different definitions of the coastline: the boundary between open water and land, a simplified version of that boundary, and the upland-lowland boundary. The polygon layers are supplied in a geodatabase format.