Climate change impact assessment on water resources with downscaled General Circulation Model (GCM) simulation output is characterized by uncertainty due to incomplete knowledge about the underlying geophysical processes of global change (GCM uncertainties) and due to uncertain future scenarios (scenario uncertainties). Disagreement between different GCMs and scenarios in regional climate change impact studies indicates that overreliance on a single GCM with a scenario could lead to inappropriate planning and adaptation responses. This paper focuses on modeling GCM and scenario uncertainty using possibility theory in projecting streamflow of Mahanadi river, at Hirakud, India. A downscaling method based on fuzzy clustering and Relevance Vector Machine (RVM) is applied to project monsoon streamflow from three GCMs with two green house emission scenarios. Possibilities are assigned to all the GCMs with scenarios based on their performance in modeling the streamflow of the recent past (1991–2005), when there are signals of climate forcing. The possibilities associated with different GCMs and scenarios are used as weights in computing the possibilistic mean of the CDFs projected for three standard time slices 2020s, 2050s, and 2080s. The result shows that the value of streamflow at which the CDF reaches 1 reduces with time, which shows the reduction in probability of occurrence of extreme high flow events in future. Historic record of monsoon streamflow of Mahanadi river also shows similar decreasing trend, which may be due to the effect of high surface warming. Reduction in Mahandai streamflow is likely to pose a major challenge for water resources engineers in meeting water demands in future.