The level at which stream discharge can begin to spill out of the channel into the surrounding area is called flood stage.

Name: The level at which stream discharge can begin to spill out of the channel into the surrounding area is called flood stage.
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This is correct. When stream discharge exceeds the capacity of the channel, water spills out into the surrounding area and floods occur. This level is known as flood stage.

The Level at Which Stream Discharge Can Begin to Spill