AbstractBecause the traditional Soil Conservation Service curve‐number (SCS‐CN) approach continues to be used ubiquitously in water quality models, new application methods are needed that are consistent with variable source area (VSA) hydrological processes in the landscape. We developed and tested a distributed approach for applying the traditional SCS‐CN equation to watersheds where VSA hydrology is a dominant process. Predicting the location of source areas is important for watershed planning because restricting potentially polluting activities from runoff source areas is fundamental to controlling non‐point‐source pollution. The method presented here used the traditional SCS‐CN approach to predict runoff volume and spatial extent of saturated areas and a topographic index, like that used in TOPMODEL, to distribute runoff source areas through watersheds. The resulting distributed CN–VSA method was applied to two subwatersheds of the Delaware basin in the Catskill Mountains region of New York State and one watershed in south‐eastern Australia to produce runoff‐probability maps. Observed saturated area locations in the watersheds agreed with the distributed CN–VSA method. Results showed good agreement with those obtained from the previously validated soil moisture routing (SMR) model. When compared with the traditional SCS‐CN method, the distributed CN–VSA method predicted a similar total volume of runoff, but vastly different locations of runoff generation. Thus, the distributed CN–VSA approach provides a physically based method that is simple enough to be incorporated into water quality models, and other tools that currently use the traditional SCS–CN method, while still adhering to the principles of VSA hydrology. Copyright © 2004 John Wiley & Sons, Ltd.