Floods are the most common and widespread climate-related hazard on Earth. Flood forecasting can reduce the death toll associated with floods. Satellites offer effective and economical means for calculating areal rainfall estimates in sparsely gauged regions. However, satellite-based rainfall estimates have had limited use in flood forecasting and hydrologic stream flow modeling because the rainfall estimates were considered to be unreliable. In this study we present the calibration and validation results from a spatially distributed hydrologic model driven by daily satellite-based estimates of rainfall for sub-basins of the Nile and Mekong Rivers. The results demonstrate the usefulness of remotely sensed precipitation data for hydrologic modeling when the hydrologic model is calibrated with such data. However, the remotely sensed rainfall estimates cannot be used confidently with hydrologic models that are calibrated with rain gauge measured rainfall, unless the model is recalibrated. ?? Springer Science+Business Media, Inc. 2007.