Rapid land use/-cover change has increasingly transformed the hydrological functioning of tropical Andean ecosystems. The hydrological response to forest cover change strongly depends on the initial state of the ecosystem. Relatively little is known about human-disturbed ecosystems where forest plantations have been established on highly degraded land. In this paper, we analyze the impact of forest change on water and sediment fluxes for a highly degraded Andean catchment. Different pathways of land cover change (1963-2007) are observed in the Jadan catchment, with deforestation taking place in remote uplands and recovery and reforestation in the middle and lower parts where agricultural and bare lands are prevalent. Time series analyses of streamflow and rainfall data (1979/1982-2005/2007) show significant shifts in the distribution of rainfall and flow data. Changes in discharge are not resulting from changes in precipitation, as the direction of change is opposite. The removal of native forest for rangeland or croplands (by -20km 2) is likely to have contributed to the increase in total annual water yield, through an increase in annual baseflow by 25mm. The observed changes in peakflow are important as the 1st percentile highest flow rates were 54% lower, while the 1st percentile rainfall amounts increased by 52%. The observed decrease in peakflow cannot be explained by clearcut of native forest, but is likely to be related to reforestation of degraded lands as well as spontaneous recovery of vegetation on remaining grazing lands. Over the same time period, a major decrease in specific sediment yields and suspended sediment loads was observed. Although deforestation in the upper parts led to increased landslide activity, this change is not reflected in an increased sediment yield. Small upland rivers are often nearly completely blocked by landslide material, thereby reducing their potential to transport sediment. In contrast, the reduction in estimated erosion is likely to be caused by the reduction of the degraded areas in areal extent as well as to the (partial) recovery of the vegetation in these areas. © 2012 Elsevier B.V..