Water resources managers commonly rely on information collected by hydrometric networks without clear knowledge of their efficiency. Optimal water monitoring networks are still scarce especially in the Canadian context. Herein, a dual entropy multi-objective optimization (DEMO) method uses information theory to identify locations where the addition of a hydrometric station would optimally complement the information content of an existing network. This research explores the utility of transinformation (TI) analysis, which can quantitatively measure the contribution of unique information from a hydrometric station. When used in conjunction, these methods provide an objective measure of network efficiency, and allow the user to make recommendations to improve existing hydrometric networks. A technique for identifying and dealing with regulated basins and their related bias on streamflow regionalization is also examined. The Ottawa River Basin, a large Canadian watershed with a number of regulated hydroelectric dams, was selected for the experiment. The TI analysis approach provides preliminary information which is supported by DEMO results. Regionalization was shown to be more accurate when the regulated basin stations were omitted using leave one out cross validation. DEMO analysis was performed with these improvements and successfully identified optimal locations for new hydrometric stations in the Ottawa River Basin.