The effect of controlled drainage on Indiana crop yields and nitrogen use efficiency has not been studied. This study was implemented to determine the impact of drainage water management on corn and soybean yields, corn N uptake efficiency, and N loss to surface water in fields with subsurface tile drains. Four sites throughout north central Indiana were used in the study and each was set up in a paired watershed design. In 2005, three sites were planted to corn and one site was planted to soybeans. In 2006, all sites were planted with corn. Corn SPAD readings and plant samples for nitrogen analysis were taken three times during the growing season (V8-V10, tasseling, and silking). Corn and soybean yields were mapped with combine-mounted yield monitors. Soil nitrate levels were also taken at the end of each growing season. In the first two years of drainage water management, controlled drainage did not significantly alter yields. Preliminary analyses revealed a trend toward higher yields (1-5%) with controlled drainage when compared to no drainage water management, but additional years of data encompassing typical variations in growing season conditions are required to conclusively characterize any treatment impacts. Crop N balance will be discussed.