This study investigated the effects of urbanization predicted using the SLEUTH urban growth model (an acronym taken from Slope, Landuse, Exclusion, Urban extent, Transportation and Hillshade) under four landuse policy scenarios on the hydrological response of Ayamama watershed using the Hydrologic Engineering Center Release 1 (HEC-1) hydrological model. The SLEUTH model was calibrated based on the Brute Force Monte Carlo iteration technique using the urban extents of Istanbul in 1987, 2000, 2009 and 2013 and was verified by considering Kappa coefficient as evaluation criteria. HEC-1 was calibrated and verified using observed rainfall-runoff event and based on the coefficient of determination (R-2), Nash-Sutcliffe coefficient of efficiency (CE) and percentage of bias (PBIAS) as performance indicators. The urbanization prediction results showed that the urban extent of Ayamama watershed would reach 50.3 km(2), 44 km(2), 63 km(2) and 60 km(2) under Scenarios 1, 2, 3 and 4, respectively, in 2050. The hydrological simulation results under these urban extents showed that the urban extent of Ayamama watershed under Scenario-3, a scenario that allows unrestricted growth with the implementation of Project Canal Istanbul (PCI), resulted in the highest peak discharge and the shortest time to peak. Such an increase in the peak discharge and reduction in the time to peak will increase the risk of flooding and, therefore, extreme care needs to be taken before and during the implementation of PCI.