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This paper addresses the problem of defining appropriate characteristic which leads to homogeneous regions identifi cation, required for application of multiple nonlinear regression methodology for interpolation of hydrologic data from gauged to ungauged basins. The underlying methodology of mu ltiple nonlinear regression is based on theory of standardization and normalization of correla tion. In order to obtain synthetic runoff series at ungauged basins, one of the key steps is estimation of spatial correlation f...