The water-table fluctuation (WTF) method has been often used for estimating groundwater recharge by analysis of waterlevel measurements in observation wells. An important assumption inherent in the method is that the water level rise is solely caused by precipitation recharge. For the observation wells located near a stream, however, the water-level can be highly affected by the stream level fluctuations as well as precipitation recharge. Therefore, in applying the WTF method, there should be consideration regarding the effect of stream-aquifer interactions. Analysis of water-level hydrographs from the National Groundwater Monitoring Wells of Korea showed that they could be classified into three different types depending on their responses to either precipitation recharge or stream level fluctuations. A simple groundwater flow model was used to analyze the errors of the WTF method, which were associated with stream-aquifer interactions. Not surprisingly, the model showed that the WTF method could greatly overestimate recharge, when it was used for the observation wells of which the water-level was affected by streams. Therefore, in Korea, where most groundwater hydrographs are acquired from wells nearby a stream, more caution is demanded in applying the WTF method.