Data scarcity has traditionally precluded the application of advanced hydrologic techniques in developing countries. In this paper, we evaluate the performance of a flood forecasting scheme in a sparsely monitored catchment based on distributed hydrologic modeling, discharge assimilation, and numerical weather predictions with explicit validation uncertainty analysis. For the hydrologic component of our framework, we apply TopNet to the Cautin River basin, located in southern Chile, using a fully distributed a priori parameterization based on both literature-suggested values and data gathered during field campaigns. Results obtained from this step indicate that the incremental effort spent in measuring directly a set of model parameters was insufficient to represent adequately the most relevant hydrologic processes related to spatiotemporal runoff patterns. Subsequent uncertainty validation performed over a six month ensemble simulation shows that streamflow uncertainty is better represented during flood events, due to both the increase of state perturbation introduced by rainfall and the flood-oriented calibration strategy adopted here. Results from different assimilation configurations suggest that the upper part of the basin is the major source of uncertainty in hydrologic process representation and hint at the usefulness of interpreting assimilation results in terms of model input and parameterization inadequacy. Furthermore, in this case study the violation of Markovian state properties by the Ensemble Kalman filter did affect the numerical results, showing that an explicit treatment of the time delay between the generation of surface runoff and the arrival at the basin outlet is required in the assimilation scheme. Peak flow forecasting results demonstrate that there is a major problem with the Weather Research and Forecasting model outputs, which systematically overestimate precipitation over the catchment. A final analysis performed for a large flooding event that occurred in July 2006 shows that, in the absence of bias introduced by an incorrect model calibration, the updating of both model states and meteorological forecasts contributes to a better representation of streamflow uncertainty and to better hydrologic forecasts.