It has been operated since 1974, recently, the flood forecasting and warning system is applied in almost all the rivers in Korea, and the Storage Function Method (SFM) is used for flood routing. The SFM which was presented by Toshimitsu Kimura (1961) routes floods in channels and basins with the storage function as the basic equation. A watershed is divided into two zone, runoff and percolation area and runoff from runoff area is occurred when cumulated rainfall is not exceed saturation point, but exceed runoff is occurred from percolation area, too. Runoff area is given and not changed, runoff ratio is constant. In routing Process, runoff from runoff and percolation area is routed seperately with nonlinear conceptual reservoir having the same characteristics and it is unreasonable assumption. A modified SFM is proposed with storage function and continuity equation which has no assumption for routing process and effective rainfall is calculated by SCS Method. For Wi-stream, comparison of Kimura and the modified SFM is conducted, and it could be seen that the modified SFM is more improvable and applicable method easily by reducing the parameters.