In the Piedmont of North Carolina, a traditionally water‐rich region, reservoirs that serve over 1 million people are under increasing pressure due to naturally occurring droughts and increasing land development. Innovative development approaches aim to maintain hydrologic conditions of the undisturbed landscape, but are based on insufficient target information. This study uses the hydrologic landscape concept to evaluate reference hydrology in small headwater catchments surrounding Falls Lake, a reservoir serving Raleigh and the greater Triangle area. Researchers collected one year of detailed data on water balance components, including precipitation, evapotranspiration, streamflow, and shallow subsurface storage from two headwater catchments representative of two hydrologic landscapes defined by differences in soils and topographic characteristics. The two catchments are similar in size and lie within the same physiographic region, and during the study period they showed similar water balances of 26‐30% Q, −4 to 5% ΔS, 59‐65% evapotranspiration, and 9‐10% G. However, the steeper, more elevated catchment exhibited perennial streamflow and nongrowing season runoff ratios (Q/P) of 33%, whereas the flat, low‐lying stream was drier during the growing season and exhibited Q/P ratios of 52% during the nongrowing season. A hydrologic landscape defined by topography and soil characteristics helps characterize local‐scale reference hydrology and may contribute to better land management decisions.