AbstractA previous hydrometric study of runoff production in tussock grassland drainage basins in Otago (45°50′S, 169°45′E), New Zealand, revealed a marked change of slope in storm hydrograph recessions. An environmental isotope study was initiated to investigate the runoff mechanisms operating and to test specific hypotheses to explain this break in the hydrograph recession. The results indicated that for quickflow volumes in excess of 10mm, the first part of the storm hydrograph can be attributed to two separate sources, namely, ‘old’ water from a shallow, unconfined groundwater reservoir and ‘new’ water from saturation overland flow on the lower wetlands of concave slopes. Despite the extensive area of wetlands, ‘old’ water runoff from the unconfined groundwater reservoir is delivered more rapidly to the stream than ‘new’ water from saturation overland flow. Substantial surface storage in the wetlands has first to be exceeded before rain becomes a significant part of stream discharge. For quickflow volumes less than 10mm, only ‘old’ water from groundwater contributes to the first part of the hydrograph recession. This means that only the largest 7 per cent of storms (in terms of quickflow volume) generate quickflow containing significant amounts of ‘new water’. The second part of the recession of the storm hydrograph consists of ‘old’ water derived from a remarkably well‐mixed