The Sweetwater Authority's urban runoff diversion system (URDS) comprises constructed wetlands on a hillside between the town of Spring Valley and the Sweetwater Reservoir, California, USA. The URDS were designed to divert dry-weather and first-flush urban runoff flows from the Sweetwater reservoir. However, these constructed wetlands have developed into ecologically valuable habitat. This paper evaluates the following ecological questions related to the URDS: (1) the natural development of the species present and their growth pattern; (2) the biodiversity and pollutant stress on the plants and invertebrates; and (3) the question of habitat provided for endangered species. The URDS wetlands are comprised primarily of rush (Scirpus spp.) and cattails (Typha spp.). This vegetative cover ranged from 39–78% of the area of the individual wetland ponds. Current analyses of plant tissues and wetland sediment indicates the importance of sediment sorption for metals and plant uptake of nutrients. Analyses of URDS water following runoff events show the URDS wetlands do reduce the amount of nutrients and metals in the water column. Invertebrate surveys of the wetland ponds revealed lower habitat quality and environmental stress compared to unpolluted natural habitat. The value of the wetlands as wildlife habitat is constrained by low plant biodiversity and pollution stress from the runoff. Since the primary Sweetwater Authority goal is to maintain good water quality for drinking, any secondary utilization of URDS habitat by species (endangered or otherwise) is deemed an added benefit.