Abstract
Spatially distributed hydrometeorological and plant information within the mountainous tropical Panama Canal watershed is used to estimate parameters of the Penman–Monteith evapotranspiration formulation. Hydrometeorological data from a few surface climate stations located at low elevations in the watershed are complemented by (a) typical wet‐ and dry‐season fields of temperature, wind, water vapour and pressure produced by a mesoscale atmospheric model with a 3 × 3 km^2^ spatial and hourly temporal resolution, and (b) leaf area index fields estimated over the watershed during a few years using satellite data with two different spatial and temporal resolutions. The mesoscale model estimates of spatially distributed surface hydrometeorological variables provide the basis for the extrapolation of the surface climate station data to produce input for the Penman–Monteith equation. The satellite information and existing digital spatial databases of land use and land cover form the basis for the estimation of Penman–Monteith spatially distributed parameter values. Spatially distributed 3 × 3 km^2^ potential evapotranspiration estimates are obtained for the 3300 km^2^ Panama Canal watershed. Estimates for Gatun Lake within the watershed are found to reproduce well the monthly and annual lake evaporation obtained from submerged pans. Sensitivity analysis results of potential evapotranspiration estimates with respect to cloud cover, dew formation, leaf area index distribution and mesoscale model estimates of surface climate are presented and discussed. The main conclusion is that even the limited spatially distributed hydrometeorological and plant information used in this study contributes significantly toward explaining the substantial spatial variability of potential evapotranspiration in the watershed. These results also allow the determination of key locations within the watershed where additional surface stations may be profitably placed. Copyright © 2006 John Wiley & Sons, Ltd.