Engineering design, optimal operation, evaluation of performance, and
benefit-cost analysis of a local flood warning system require an expli
cit and extensive characterization of uncertainties in terms of probab
ility distributions. Such a characterization is obtained via a Bayesia
n Processor of Forecasts (BPF) which provides (1) a prior description
of uncertainty about flood occurrence and crest height, (2) a stochast
ic characterization of the forecaster in terms of likelihood functions
, and (3) a posterior description of uncertainty about flood occurrenc
e and crest height, conditional on a flood crest forecast. The theoret
ical novelty of our BPF is that a posterior distribution can be constr
ucted for any prior distribution, parametric or nonparametric, the gen
erality essential in light of the variety of models used as flood cres
t distributions. The conceptual novelty of the BPF opens a new researc
h paradigm (which provides distributions for real-time decision making
based on forecasts) that adjoins the classical flood frequency analys
is (which has provided probability distributions for planning and desi
gn).