A pilot study in area-stream factor correlation was undertaken to develop analytical techniques to be used in a method to predict streamflow from rainfall on various drainage areas. Runoff volumes and a function which distributes these volumes to form a hydrograph were called stream factors. Area factors were those characteristics which describe the watershed itself. A descriptive and analytical relation between the two sets of factors provided the nucleus of a methodology to synthesize streamflow from any area which can be numerically described. The first part of this relation was the development of a hydrograph analysis procedure. This procedure was essentially a systematic method of fitting functions to observed storm hydrographs, simultaneously producing both volumes of runoff and a function, which distributes these volumes to produce streamflow. This procedure was applied to eight storms, four on each of two watersheds, with adequate results. To complete the relationship between the two sets of factors, further work was attempted in an effort to predict the runoff volumes from the physical characteristics of the watersheds and storm rainfall. This work led to the development of the concept of variable runoff-contributing watershed areas, and the preliminary quantification of a technique to obtain these partial areas. The pilot study was part of TVA's research program to provide useful hydrologic information for area development planning. This paper is a condensation of a longer TVA report published in 1964.