This paper presents a new approach to streamflow forecasting, based on
a Markov chain model for estimating the probabilities that the one-st
ep ahead streamflow forecast will be within specified flow ranges. Wit
h the new approach, flood forecasting is possible by focusing on a pre
selected range of streamflows. In addition, the approach introduces a
multiobjective (two-criterion) function for the assessment of model pe
rformance. The two criteria are (1) the probability of issuing a false
alarm and (2) the probability of failing to predict a flood event. Th
e goal is to minimize both criteria simultaneously. Three versions of
the model are presented: a first-order Markov chain model, a second-or
der Markov chain model, and a first-order Markov chain with rainfall a
s exogenous input model. These models compared favorably to time serie
s models, using data from two watersheds (a semiarid watershed and a t
emperate watershed), when evaluated in terms of the multiobjective per
formance criterion.