Wetland protection and restoration strategies that are designed to promote hydrologic resilience do not incorporate the location of wetlands relative to the main stream network. This is primarily attributed to the lack of knowledge on the effects of wetland location on wetland hydrologic function (e.g., flood and drought mitigation). Here, we combined a watershed‐scale, surface–subsurface, fully distributed, physically based hydrologic model with historical, existing, and lost (drained) wetland maps in the Nose Creek watershed in the Prairie Pothole Region of North America to (1) estimate the hydrologic functions of lost wetlands and (2) estimate the hydrologic functions of wetlands located at different distances from the main stream network. Modeling results showed wetland loss altered streamflow, decreasing baseflow and increasing stream peakflow during the period of the precipitation events that led to major flooding in the watershed and downstream cities. In addition, we found that wetlands closer to the main stream network played a disproportionately important role in attenuating peakflow, while wetland location was not important for regulating baseflow. The findings of this study provide information for watershed managers that can help to prioritize wetland restoration efforts for flood or drought risk mitigation.