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As watershed models become increasingly sophisticated and useful, there is a need to extend their applicability to locations where they cannot be calibrated or validated. A new methodology for the regionalization of a watershed model is introduced and evaluated. The approach involves calibration of a watershed model to many sites in a region, concurrently. Previous research that has sought to relate the parameters of monthly water balance models to physical drainage basin characteristics in a region has met with limited success. Previous studies have taken the two-step approach: (a) estimation of watershed model parameters at each site, followed by (b) attempts to relate model parameters to drainage basin characteristics. Instead of treating these two steps as independent, both steps are implemented concurrently. All watershed models in a region are calibrated simultaneously, with the dual objective of reproducing the behaviour of observed monthly streamflows and, additionally, to obtain good relationships between watershed model parameters and basin characteristics. The approach is evaluated using 33 basins in the southeastern region of the United States by comparing simulations using the regional models for three catchments which were not used to develop the regional regression equations. Although the regional calibration approach led to nearly perfect regional relationships between watershed model parameters and basin characteristics, these “improved” regional relationships did not result in improvements in the ability to model streamflow at ungauged sites. This experiment reveals that improvements in regional relationships between watershed model parameters and basin characteristics will not necessarily lead to improvements in the ability to calibrate a watershed model at an ungauged site.