Freshwater resources are vital for human and natural systems. However, anthropogenic activities, such as agricultural practices, have led to the degradation of the quality of these limited resources through pollutant loading. Agricultural Best Management Practices (BMPs), such as wetlands, are recommended as a valuable solution for pollutant removal. However, evaluation of their long-term impacts is difficult and requires modeling since performing in-situ monitoring is expensive and not feasible at the watershed scale. In this study, the impact of natural wetland implementation on total phosphorus reduction was evaluated both at the subwatershed and watershed levels. The study area is the Saginaw River Watershed, which is largest watershed in Michigan. The phosphorus reduction performances of four different wetland sizes (2, 4, 6, and 8 ha) were evaluated within this study area by implementing one wetland at a time in areas identified to have the highest potential for wetland restoration. The subwatershed level phosphorus loads were obtained from a calibrated Soil and Water Assessment Tool (SWAT) model. These loads were then incorporated into a wetland model (System for Urban Stormwater Treatment and Analysis IntegratioN-SUSTAIN) to evaluate phosphorus reduction at the subwatershed level and then the SWAT model was again used to route phosphorus transport to the watershed outlet. Statistical analyses were performed to evaluate the spatial impact of wetland size and placement on phosphorus reduction. Overall, the performance of 2 ha wetlands in total phosphorus reduction was significantly lower than the larger sizes at both the subwatershed and watershed levels. Regarding wetland implementation sites, wetlands located in headwaters and downstream had significantly higher phosphorus reduction than the ones located in the middle of the watershed. More specifically, wetlands implemented at distances ranging from 200 to 250 km and 50-100 km from the outlet had the highest impact on phosphorus reduction at the subwatershed and watershed levels, respectively. A multi criteria decision making (MCDM) method named VIKOR was successfully executed to identify the most suitable wetland size and location for each subwatershed considering the phosphorus reduction and economic cost associated with wetland implementation. The methods introduced in this study can be easily applied to other watersheds for selection and placement of wetlands while considering environmental benefits and economic costs.