The objective of this study was to examine the chemistry of trace elements in coalbed methane (CBM) discharge water reacting with semi-arid ephemeral stream channels in Powder River Basin, Wyoming. The study area consisted of two ephemeral streams, Burger Draw and Sue Draw. These streams are tributaries to the perennial Powder River, Wyoming. Samples were collected bimonthly from three CBM discharge points and seven channel locations in Burger Draw and Sue Draw. Samples were also collected bimonthly from the Powder River above and below the confluence of Burger Draw. Before sample collection, pH, temperature, dissolved oxygen (DO), and turbidity were measured in the field. Samples were transported to the laboratory and analyzed for dissolved trace elements including iron (Fe), manganese (Mn), boron (B), arsenic (As), selenium (Se), and fluoride (F). Results suggest pH of discharge water was 7.1 and increased significantly in the downstream channel of Burger Draw to 8.84 before joined with the Powder River. Temperature of CBM produced water at discharge points ranged between 20.3 and 22.7 [composite function (small circle)]C. Before discharge, DO concentrations of CBM produced water were between 1.42 and 1.5 mg/L. No significant differences in temperature, DO, and turbidity were found between Burger Draw flow and Powder River flow. However, significant differences were found within the sampling period in temperature and turbidity in flow of Burger Draw. The temperature, DO, and turbidity were all significantly different in Powder River within the sampling period. The CBM discharge water consisted of higher concentrations of F, Fe and B compared to other components. Significant changes were observed for Fe, Mn, and As; and seasonally for B. Dissolved Fe and Mn decreased, while As and Se increased in downstream channel flow. These findings will be useful in proper management of CBM produced water in semi-arid environments.