Earth resources satellites have provided a means for the timely, efficient, and accurate monitoring of watershed snowcovered area. Several techniques are available for analysing the data ranging from simple photointerpretation to automated digital methods. Although photointerpretation methods are completely suitable and recommended for many applications, it is believed that a highly interactive digital processing system, when combined with a skilled remote sensing applications specialist, will provide maximum operational use of satellite snowcover observations. Several studies have shown that satellite-observed snowcovered area is significantly related to various expressions of seasonal streamflow. The results indicate that snowcovered area could be incorporated into conventional snowmelt runoff prediction methods as an additional index parameter for improving streamflow estimates. Additionally, the snowcovered area data are compatible with several numerical hydrologic models and quasioperational tests are being conducted.