In this paper, an improvement of the boundederror fault detection and identification method based on inputoutput polynomials of ([2]) is proposed. It is based on integrodifferential polynomials used to estimate the fault values. The standard input-output polynomials are obtained from differential algebra elimination theory and can be used both for diagnosability analysis and fault estimation. Unfortunately, they may involve derivatives of high order whose estimation is a hard problem when system outputs are uncertain. Distribution theory allows us to transform them into integrodifferential polynomials that involve lower order derivatives of the model outputs. In this paper, this method, extended to the set-membership (SM) framework, is used with the focus of achieving fault detection and identification. The original method and the new method are applied to a coupled water-tanks model and compared. It is shown that the new method significantly improves the fault detection and identification results.