Headwater streams are the small flow lines (swales), creeks and streams that are the origin of most rivers. These streams are generally very small in size and may only flow or have ponds of water occasionally. While relatively small in size, these waterways can constitute 75% or more of the waterway length in a catchment, and therefore drain a substantial proportion of the land surface area of a catchment. Because of their extent, they account for a large proportion of the water that flows in the downstream reaches of a waterway. Headwater streams are important in regulating the flow of water, sediments and nutrients throughout a catchment. They also contribute to local biodiversity values, often providing habitat for rare and threatened species. If not managed appropriately, they can be major sources of sediment and nutrient inputs to downstream waterways. These streams are increasingly under pressure with urban development often transforming them into a stormwater network comprising impervious surfaces and pipes. The values and functions of headwater streams can be protected through integrated urban and drainage design with benefits to the environment, the community, land managers and developers. This paper outlines the values of headwater streams and the benefits of protecting them in urban growth areas.