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Understanding how diverse headwater streams contribute water downstream is critical for accurate modelling of seasonal flow dynamics in larger systems. This study investigated how headwater catchments, with diverse subsurface storage, influence downstream flows within Lookout Creek—a 62 km², 5th‐order catchment in the rain‐snow transition zone in western Oregon, USA. We analysed one year of hydrometric and water stable isotope data collected at 10 stream locations, complemented by a decade of precipitation isotopic data. As expected, isotopic data revealed that most of the streamflow was sourced from large fall and winter storms. Generally, stream isotope ratios decrease with elevation. However, some streams had higher isotopic values than expected, reflecting the influence of isotopically heavy storms and relatively low storage. Other streams that tended to have low flow variability in response to precipitation inputs had lower isotopic values, indicating higher elevation water sources than their topographic watershed boundaries. Both hydrometric data and water isotope‐based end‐member mixing models suggest storage differences among headwater catchments influenced the seasonal water contributions from tributaries. Most notably, the contributions of Cold and Longer Creeks, which occupy less than 10% of the Lookout Creek drainage area, sustain up to 50% of the streamflow in the summer. These catchments have high storage and high groundwater contributions, as evidenced by flat flow duration curves. Finally, our data suggest that geologic variability and geomorphic complexity (presence of earthflows and landslides) can be indicators of storage that dramatically influence water movement through the critical zone, the variation in streamflow, and the response of streams to precipitation events. Heterogeneity in headwater catchment storage is key to understanding flow dynamics in mountainous regions and the response of streams to changes in climate and other disturbances.