Here are the web links and full reference of the Isaak et al. (2014) paper I showed while going through the spatial stream network model tutorial in class on Monday. I (and many others) have been waiting a long time for the availability of methods such as these and now we have them!
SSN/STARS – Spatial Statistics on Stream Networks
OLD ESRI Blog post (tools are now updated for ArcGIS 10.2)
NorWeST Regional Stream Temperature
Daniel J. Isaak, Erin E. Peterson, Jay M. Ver Hoef, Seth J. Wenger, Jeffrey A. Falke, Christian E. Torgersen, Colin Sowder, E. Ashley Steel, Marie-Josee Fortin, Chris E. Jordan, Aaron S. Ruesch, Nicholas Som and Pascal Monestiez. 2014. Applications of spatial statistical network models to stream data. Wiley Interdisciplinary Reviews: Water. DOI: 10.1002/wat2.1023