Coho salmon (Oncorhynchus kisutch) were present in the Coyote Creek watershed until the 1950s, suggesting that some spawning and rearing habitat was located in the watershed downstream from Coyote Reservoir which was completed in 1936—blocking access to of upstream watershed. Historically, suitable habitat for coho salmon in the Coyote Creek watershed was likely restricted to the San Felipe Creek and Upper Penitencia Creek watersheds and possibly perennial reaches of Coyote Creek, and a few spring-fed tributaries upstream from Gilroy Hot Springs. Assuming the Coyote Percolation Reservoir was not a complete barrier to coho salmon; the construction of Anderson Dam in 1950 would have eliminated any coho salmon that occurred in the San Felipe Creek watershed that now flows into Anderson Lake. However, if the Coyote Creek Percolation Reservoir were a migration barrier, then only Upper Penitencia Creek would have provided suitable habitat for coho salmon after 1934. San Felipe Creek currently contains habitat potentially suitable to coho salmon with low stream temperatures related to cool groundwater discharges in the Calaveras Fault zone. During early June and late-July 1997, the senior author recorded water temperatures within the San Felipe Creek watershed within pools containing rainbow trout between and , respectively. Zones of groundwater discharge along the Calaveras Fault zone that traverses the watershed maintain cool summer water temperatures. Upper Penitencia Creek, which enters lower Coyote Creek near its mouth and drains the steep coastal hills to the east also may have contained suitable coho salmon habitat.