In the southwestern United States, flood-frequency relations for streams that drain small arid basins are difficult to estimate, largely because of the extreme temporal and spatial variability of floods and the many years of no flow. A method is proposed that is based on the station-year method. The new method produces regional flood-frequency relations using all available annual peak-discharge data. The prediction errors for the relations are directly assessed using randomly selected subsamples of the annual peak discharges.