This study demonstrates the integration of rehabilitation and flood management planning in a steep, boulder-bedded stream in a coastal urban catchment on the South Island of New Zealand. The Water of Leith, the primary stream flowing through the city of Dunedin, is used as a case study. The catchment is steep, with a short time of concentration and rapid hydrologic response, and the lower stream reaches are highly channelized with floodplain encroachment, a high potential for debris flows, significant flood risks, and severely degraded aquatic habitat. Because the objectives for rehabilitation and flood management in urban catchments are often conflicting, a number of types of analyses at both the catchment and the reach scales and careful planning with stakeholder consultation were needed for successful rehabilitation efforts. This included modeling and analysis of catchment hydrology, fluvial geomorphologic assessment, analysis of water quality and aquatic ecology, hydraulic modeling and flood risk evaluation, detailed feasibility studies, and preliminary design to optimize multiple rehabilitation and flood management objectives. The study showed that all of these analyses were needed for integrated rehabilitation and flood management and that some incremental improvements in stream ecological health, aesthetics, and public recreational opportunities could be achieved in this challenging environment. These methods should be considered in a range of types of stream rehabilitation projects.