The role of temporally varying surface water-groundwater (SW-GW) exchange on nitrate removal by streambed denitrification was examined along a reach of Leary Weber Ditch (LWD), Indiana, a small, first-order, low-relief agricultural watershed within the Upper Mississippi River basin, using data collected in 2004 and 2005. Stream stage, GW heads (H), and temperatures (T) were continuously monitored in streambed piezometers and stream bank wells for two transects across LWD accompanied by synoptic measurements of stream stage, H, T, and nitrate (NO₃) concentrations along the reach. The H and T data were used to develop and calibrate vertical two-dimensional, models of streambed water flow and heat transport across and along the axis of the stream. Model-estimated SW-GW exchange varied seasonally and in response to high-streamflow events due to dynamic interactions between SW stage and GW H. Comparison of 2004 and 2005 conditions showed that small changes in precipitation amount and intensity, evapotranspiration, and/or nearby GW levels within a low-relief watershed can readily impact SW-GW interactions. The calibrated LWD flow models and observed stream and streambed NO₃ concentrations were used to predict temporal variations in streambed NO₃ removal in response to dynamic SW-GW exchange. NO₃ removal rates underwent slow seasonal changes, but also underwent rapid changes in response to high-flow events. These findings suggest that increased temporal variability of SW-GW exchange in low-order, low-relief watersheds may be a factor contributing their more efficient removal of NO₃.