2012 Annual Report 1a.Objectives (from AD-416): To apply a novel hydrologic data assimilation scheme to improve the Australian Bureau of Meteorology’s operational flood forecasting system through the assimilation of remotely-sensed soil moisture into a hydrologic forecasting model. 1b.Approach (from AD-416): The approach will be based on a recently developed data assimilation system that allows for the simultaneous correction of both antecedent soil moisture (in a hydrologic model) and incident rainfall feed into a hydrologic model. The approach will be applied and tested over several Australian river basins. 3.Progress Report: This project seeks to integrate USDA ARS remote sensing and data assimilation tools into the operational hydrologic forecasts made by the Australian Bureau of Meteorology. Preliminary year 1 project objectives focused on the successful implemention of a hydrologic model in key Australian test basins. These objectives have been successfully completed and follow-on work will focus on the integration of remote sensing observations into the model.