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The effects of drainage water storage in ponds on nutrient leaching and water resource management were examined in a three-year (2006-2008) field experiment in a 163 km2 study area in southern Sweden. The land use in the area is mainly intensive agriculture and approximately 2.5 million m3 of groundwater are used for irrigation every summer. In 2004, 27 small water storage ponds were constructed in the area. The total storage capacity of these ponds is 355 000 m3 and if they were to be refilled e.g. 1.5 times per season, the groundwater use for irrigation could be decreased by 20%. This study examined the effects of the ponds on nutrient transport and water resource management and developed an index for risk assessment of drainage water quality. Weather parameters and changes in water storage were recorded in the field and samples of water entering and leaving the ponds were collected. Analyses of the water revealed that the ponds acted as a trap for transported nitrogen and phosphorus within the catchment. Digital data on land use, soil type, drainage network and slope gradients were used to identify watershed boundaries and to evaluate the impact of watershed properties on water quality. The potential non-point pollution indicator method (PNPPI) developed for assessing catchment potential as a contributor of nitrogen and phosphorus leaching proved useful. However, the temporal variability was not fully considered and a procedure for including point sources of pollution should be added.