This study focuses on using remote sensing techniques to estimate the evapotranspiration cover coefficient (CV) which is an important parameter for stream flow. The objective is to derive more accurate stream flow from the estimated CV. The study area is located in the Dan-Shuei watershed in northern Taiwan. The processes include the land-use classification using hybrid classification and four Landsat-5 TM images; the CV estimations based on remote sensing and traditional approaches; comparison of stream flow simulation according to the above two CV values. The result indicated that the study area was classified into seven land-use types with 88.3% classification accuracy. The simulated stream flow using remote sensing approach could represent more accurate hydrological characteristics than a traditional approach. Obviously integrating remote sensing technique and the SEBAL model is a useful approach to estimate the CV. The CV parameter estimated by remote sensing technique did improve the accuracy of the stream flow simulation. Therefore, the results can be extended to further studies such as forest water management. (C) 2010 Elsevier B.V. All rights reserved.