We consider the problem of modeling traffic phenomena at a macroscopic level. Increasing availability of streaming probe data allowing the observation of non-stationary traffic motivates the development of models capable of leveraging this information. We propose a phase transition model of non-stationary traffic in conservation form, capable of propagating joint measurements from fixed and mobile sensors, to model complex traffic phenomena such as hysteresis and phantom jams, and to account for forward propagation of information in congested traffic. The model is shown to reduce to the Lighthill-Whitham-Richards model within each traffic phase for the case of stationary states, and to have a physical mesoscopic interpretation in terms of drivers' behavior. A corresponding discrete formulation appropriate for practical implementation is shown to provide accurate numerical solution to the proposed model. The performance of the model introduced is assessed on benchmark cases and on experimental vehicle trajectories from the NGSIM datasets. © 2013 Elsevier Ltd.