A watershed model can be used to better understand the relationship between land use activities and hydrologic/water quality processes that occur within a watershed. The physically based, distributed parameter model (SWAT) and a conceptual, lumped parameter model (HSPF), were selected and their performance were compared in simulating runoff and sediment yields from the Polecat Creek watershed in Virginia, which is 12,048 ha in size. A monitoring project was conducted in Polecat Creek watershed during the period of October 1994 to June 2000. The observed data (stream flow and sediment yield) from the monitoring project was used in the calibration/validations of the models. The period of September 1996 to June 2000 was used for the calibration and October 1994 to December 1995 was used for the validation of the models. The outputs from the models were compared to the observed data at several sub-watershed outlets and at the watershed outlet of the Polecat Creek watershed. The results indicated that both models were generally able to simulate stream flow and sediment yields well during both the calibration/validation periods. For annual and monthly loads, HSPF simulated hydrologic and sediment yield more accurately than SWAT at all monitoring sites within the watershed. The results of this study indicate that both the SWAT and HSPF watershed models performed sufficiently well in the simulation of stream flow and sediment yield with HSPF performing moderately better than SWAT for simulation time-steps greater than a month.