The importance of stochastic modelling of hydrological variables like runoff and precipitation in the design of water resources systems is too well recognised to need any further emphasis. Most of the Indian Universities offering Postgraduate programmes in Hydraulics and Water Resources Engineering have included "Stochastic Hydrology" as one of the subjects in their syllabi. The material presented in this text-book is the outcome of teaching the subject to postgraduate students at Regional Engineering College,

Warangal, for over five years and the extensive study and use of stochastic models in my doctoral work.