We analyzed Landsat MSS and ETM+ images to detect 25-year land-cover change (1976-2001) in the critical Taguibo Watershed in Mindanao Island, Southern Philippines. This watershed has experienced historical modifications of its land-cover due to the presence of logging industries in the 1960s, and continuous deforestation due to illegal logging and slash-and-burn agriculture in the present time. To estimate the impacts of land-cover change on watershed runoff, we utilized the land-cover information derived from the Landsat images to parameterize a GIS-based hydrologic model. The model was then calibrated with field-measured discharge data and used to simulate the responses of the watershed in its year 2001 and year 1976 land-cover conditions. The availability of landcover information on the most recent state of the watershed from the Landsat ETM+ image made it possible to locate areas for rehabilitation such as barren and logged-over areas. We then created a rehabilitated" land-cover condition map of the watershed (reforestation of logged-over areas and agro-forestation of barren areas) and used it to parameterize the model and predict the runoff responses of the watershed. Model results showed that changes in land-cover from 1976 to 2001 were directly related to the significant increase in surface runoff. Runoff predictions showed that a full rehabilitation of the watershed especially in barren and logged-over areas will likely to reduce the generation of huge volume of runoff during rainfall events. The results of this study have demonstrated the usefulness of multi-temporal Landsat images in detecting land-cover change, in identifying areas for rehabilitation, and in evaluating rehabilitation strategies for management of tropical watersheds through its use in hydrologic modeling."