Abstract. This study develops a new error modelling method for short-term and real-time streamflow forecasting, called error reduction and representat ion in stages (ERRIS). The novelty of ERRIS is that it does not rely on a single complex error model but runs a sequence of simple error models through four stages. At each stage, an error model attempts to incrementally improve over the previous stage. Stage 1 establishes parameters of a hydrological model and parameters of a transformation function for data normalization, Stage 2 applies a bias-correction, Stage 3 applies an autoregressive (AR) updating, and Stage 4 applies a Gaussian mixture distribution to represent model residuals. For a range of catchments, the forecasts at the end of Stage 4 are shown to be much more accurate than at Stage 1 and to be highly reliable in representing forecast uncertainty. In particular, the forecasts become more accurate by applying the AR updating at Stage 3, and more reliable in uncertainty spread by using a mixture of two Gaussian distributions to represent the residuals at Stage 4. While the method produces ensemble forecasts, ERRIS can be applied to any existing calibrated hydrological models, including those calibrated to deterministic (e.g. least-squares) objectives.