From the little information you have given guess can start by reading materials from the links below. They are more related to SWAT: Again how large is your large? Where is your study area? Do you already have an idea of the remotely sensed data you intend to use?...
Please if you make these and other things clear then I may be able to suggest a few things that will be more helpful. But in the mean time check the links below to see if they will be useful especially the last one (3).
Fakhruddin what you can do to make the discussion a bit easier is, for each data collected(LANDSAT, RADARSAT...) tell me what you intend to extract from it then I can take it from there. Also be clear what you intend to do with the output? or you just what to develop a methodology for generating discharge using remotely sensed data?
Satellite soil moisture data can be very useful for improving discharge prediction. For very large river basins, I strongly believe that soil moisture can provide a significant added-value. On this topic, you can look at the following papers: Brocca et al., 2010 ( http://dx.doi.org/10.5194/hess-14-1881-2010 ), Meier et al., 2011 ( http://dx.doi.org/10.5194/hess-15-999-2011 ) and Tramblay et al., 2012 ( http://dx.doi.org/10.5194/hessd-9-9361-2012 ). All these papers are open access. Moreover, ASCAT and AMSR-E satellite soil moisture data are freely available, just search at data providers (e.g. TuWien for ASCAT: http://www.ipf.tuwien.ac.at/ ).
On the other hand, SAR data can be useful for delineating flooded areas and, hence, to calibrate hydraulic modelling (e.g., http://dx.doi.org/10.5194/hess-14-1773-2010 ).
No literature reference but you might want to have a look at the work that Robert Brakenridge and I are currently doing, running the Dartmouth Flood Observatory by applying only remote sensing techniques (http://floodobservatory.colorado.edu/).
Apart from floods we are also monitoring river discharge (see links on the lower part of the frontpage).
For large rivers it could be an option to look at radar altimetry, e.g. This paper which is open access.
River monitoring from satellite radar altimetry in the Zambezi River basin. / Michailovsky, Claire Irene B. ; McEnnis, S. ; Berry, P. A. M. ; Smith, R. ; Bauer-Gottwein, Peter.
In: Hydrology and Earth System Sciences, Vol. 16, No. 7, 2012, p. 2181-2192.