Abstract. Environmental streamflow management can improve the ecological health of streams by returning modified flows to more natural conditions. The Ecological Limits of Hydrologic Alteration (ELOHA) framework for developing regional environmental flow criteria has been implemented to reverse hydromodification across the heterogenous region of coastal southern California (So. CA) by focusing on two elements of the flow regime: streamflow permanence and flashiness. Within ELOHA, classification groups streams by hydrologic and geomorphic similarity to stratify flow–ecology relationships. Analogous grouping techniques are used by hydrologic modelers to facilitate streamflow prediction in ungaged basins (PUB) through regionalization. Most watersheds, including those needed for stream classification and environmental flow development, are ungaged. Furthermore, So. CA is a highly heterogeneous region spanning gradients of urbanization and flow permanence, which presents a challenge for regionalizing ungaged basins. In this study, we develop a novel classification technique for PUB modeling that uses an inductive approach to group perennial, intermittent, and ephemeral regional streams by modeled hydrologic similarity followed by deductively determining class membership with hydrologic model errors and watershed metrics. As a new type of classification, this hydrologic-model-based classification (HMC) prioritizes modeling accuracy, which in turn provides a means to improve model predictions in ungaged basins while complementing traditional classifications and improving environmental flow management. HMC is developed by calibrating a regional catalog of process-based rainfall–runoff models, quantifying the hydrologic reciprocity of calibrated parameters that would be unknown in ungaged basins and grouping sites according to hydrologic and physical similarity. HMC was applied to 25 USGS streamflow gages in the “South Coast” region of California and was compared to other hybrid PUB approaches combining inductive and deductive classification. Using an average cluster error metric, results show that HMC provided the most hydrologically similar groups according to calibrated parameter reciprocity. Hydrologic-model-based classification is relatively complex and time-consuming to implement, but it shows potential for simplifying ungaged basin management. This study demonstrates the benefits of thorough stream classification using multiple approaches and suggests that hydrologic-model-based classification has advantages for PUB and building the hydrologic foundation for environmental flow management.