Statistics on the streamflow are taken at the tailrace of the powerhouse, measuring the water that would flow through the river were it not diverted,[4] although not including small tributaries, including Daybreak Canyon, that join the Chelan riverbed from the Lake Chelan Dam to the canal outlet.

The dry riverbed runs 3.9 miles (6.3 km) through a steep and rocky gorge, dropping 401 feet (122 m) before reaching the Columbia River near the community of Chelan Falls.

In addition, during the summer the water level of Lake Chelan is maintained at a relatively high elevation for scenic and recreational purposes.

[4] Normally water flow in the dry bypassed reach occurs in spring and early summer, when snow melt raises Lake Chelan to levels requiring spill for flood control.

[3] The river's water is diverted through a 2.2-mile (3.5 km) long power tunnel, which ends with a 401 feet (122 m) drop through turbines at the powerhouse.