“…If the input to the reservoir j , given by precipitation minus evaporation, is a random series, which is assumed to be fulfilled for Δ t = 1 month, then it has been shown [ Klemeš , 1978] that Q j is an AR(1) process with autocorrelation a j = l/( k j + 1). In a river network, owing to the spatial variations of rainfall [ Liljequist and Cehak , 1984; Shah et al , 1996] and storage properties (soil), the runoff at a point on the river is not from a single reservoir but rather a cascade [ Klemeš , 1974] of reservoirs, one feeding the next. For example, runoff at point 3 in Figure 1 is (for Δ t large against the flow time) given by the aggregated runoff contributions from reservoirs above that point, Q (3) = ∑ j =1,…, m Q j .…”