[1] Regression-type, hybrid empirical/process-based models (e.g., SPARROW, PolFlow) have assumed a prominent role in efforts to estimate the sources and transport of nutrient pollution at river basin scales. However, almost no attempts have been made to explicitly accommodate interannual nutrient loading variability in their structure, despite empirical and theoretical evidence indicating that the associated source/sink processes are quite variable at annual timescales. In this study, we present two methodological approaches to accommodate interannual variability with the Spatially Referenced Regressions on Watershed attributes (SPARROW) nonlinear regression model. The first strategy uses the SPARROW model to estimate a static baseline load and climatic variables (e.g., precipitation) to drive the interannual variability. The second approach allows the source/sink processes within the SPARROW model to vary at annual timescales using dynamic parameter estimation techniques akin to those used in dynamic linear models. Model parameterization is founded upon Bayesian inference techniques that explicitly consider calibration data and model uncertainty. Our case study is the Hamilton Harbor watershed, a mixed agricultural and urban residential area located at the western end of Lake Ontario, Canada. Our analysis suggests that dynamic parameter estimation is the more parsimonious of the two strategies tested and can offer insights into the temporal structural changes associated with watershed functioning. Consistent with empirical and theoretical work, model estimated annual in-stream attenuation rates varied inversely with annual discharge. Estimated phosphorus source areas were concentrated near the receiving water body during years of high in-stream attenuation and dispersed along the main stems of the streams during years of low attenuation, suggesting that nutrient source areas are subject to interannual variability.

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How can spatially explicit nonlinear regression modelling be used for obtaining nonpoint source loading estimates in watersheds with limited information? What is the value of additional monitoring and where should future data‐collection efforts focus on? In this study, we address two frequently asked questions in watershed modelling by implementing Bayesian inference techniques to parameterize SPAtially Referenced Regressions On Watershed attributes (SPARROW), a model that empirically estimates the relation between in‐stream measurements of nutrient fluxes and the sources/sinks of nutrients within the watershed. Our case study is the Hamilton Harbour watershed, a mixed agricultural and urban residential area located at the western end of Lake Ontario, Canada. The proposed Bayesian approach explicitly accounts for the uncertainty associated with the existing knowledge from the system and the different types of spatial correlation typically underlying the parameter estimation of watershed models. Informative prior parameter distributions were formulated to overcome the problem of inadequate data quantity and quality, whereas the potential bias introduced from the pertinent assumptions is subsequently examined by quantifying the relative change of the posterior parameter patterns. Our modelling exercise offers the first estimates of export coefficients and delivery rates from the different subcatchments and thus generates testable hypotheses regarding the nutrient export ‘hot spots’ in the studied watershed. Despite substantial uncertainties characterizing our calibration dataset, ranging from 17% to nearly 400%, we arrived at an uncertainty level for the whole‐basin nutrient export estimates of only 36%. Finally, we conduct modelling experiments that evaluate the potential improvement of the model parameter estimates and the decrease of the predictive uncertainty if the uncertainty associated with the current nutrient loading estimates is reduced. Copyright © 2012 John Wiley & Sons, Ltd.

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