Fluxes of dissolved nitrogen (N) as nitrate from forested watersheds in the mid-Appalachian region have important water quality ramifications for small acid-sensitive streams and for downstream receiving waters such as the Chesapeake Bay. Previous studies of N leakage have suggested that annual dissolved N fluxes from small watersheds can vary by several orders of magnitude and may be increasing as second-growth forests gradually become N saturated from the accrual of atmospheric N loadings. In this study, we examined the temporal (intra-annual and interannual) variability in dissolved nitrate fluxes from five small (area<15 km2) forested watersheds in the mid-Appalachian region from 1988 to 1995. At all sites, nitrate concentrations were observed to increase dramatically during storm flow events, with nitric acid contributing significantly to depressions in pH and acid-neutralizing capacity; annual nitrate fluxes were dominated by high-discharge periods. Interannually, the fluxes at each site varied by 1--2 orders of magnitude, but the patterns of N leakage displayed considerable synchrony with outbreaks of gypsy moth caterpillar defoliation that began in the late 1980s and early 1990s in this region. N leakage from forested watersheds apparently lagged the initial defoliation by several months to perhaps a year or more. Defoliation outbreaks by the gypsy moth caterpillar (or other herbivorous pests) thus provide an alternative explanation of N leakage from forest ecosystems. Poorly documented insect defoliations, rather than premature N saturation of intact forest ecosystems, need to be considered as a possible explanation of N leakage from forested watersheds in the mid-Appalachian region and elsewhere. ¿ 1998 American Geophysical Union