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Grid-based distributed models have become popular for describing spatial hydrological processes. However, the influence of non-homogeneity within a grid on streamflow simulation was not adequately addressed in the literature. In this study, we investigated how the statistical characteristics of soil moisture storage within a grid impacts on streamflow simulations. The spatial variation of the topographic index, TI, within a grid was used to determine parameter B of the statistical curve of soil moisture storage in the Xinanjiang model. For comparison of influences of the non-homogeneity within a grid on streamflow simulation, two parameterization schemes of soil moisture storage capacity were developed: a grid-parameterization scheme for a distributed model and a catchment-averaged scheme for a semi-distributed model. The practicability and usefulness of the grid-parameterization method were evaluated through model comparisons. The two models were applied in Jiangwan experimental catchment Zhejiang Province, China. Streamflow discharge data at the catchment outlet from 1971 to 1986 at different temporal resolutions, e.g. 15 min and daily time step, were used for model calibration and validation. Statistical results for different grid scales demonstrated that the mean and variation of TI and B decline significantly as the grid scale increases. The simulated streamflow discharges of the two models were similar and the semi-distributed model outperformed the distributed model slightly when the streamflow at the outlet of the catchment was used as the only basis for comparison. In addition, a relatively larger bias in the predicted discharges between these two models was observed along with an abrupt increase of soil moisture saturation ratio. A further analysis of the simulated soil moisture content distribution revealed that the distributed model can provide a reasonable representation of the variable source area concept, which was justified to some extent by the field experiment data. Editor D. Koutsoyiannis Citation Liu, J.T., Chen, X., Wu, J.C., Zhang, X.N., Feng, D.Z. and Xu, C.-Y., 2012. Grid parameterization of a conceptual, distributed hydrological model through integration of a sub-grid topographic index: necessity and practicability. Hydrological Sciences Journal, 57 (2), 282–297. [ABSTRACT FROM PUBLISHER]