A new daily water balance model is developed and tested in this paper. The new model has a similar model structure to the existing probability distributed rainfall runoff models (PDM), such as HyMOD. However, the model utilizes a new distribution function for soil water storage capacity, which leads to the SCS (Soil Conservation Service) curve number (CN) method when the initial soil water storage is set to zero. Therefore, the developed model is a unification of the PDM and CN methods and is called the PDM–CN model in this paper. Besides runoff modeling, the calculation of daily evaporation in the model is also dependent on the distribution function, since the spatial variability of soil water storage affects the catchment-scale evaporation. The generated runoff is partitioned into direct runoff and groundwater recharge, which are then routed through quick and slow storage tanks, respectively. Total discharge is the summation of quick flow from the quick storage tank and base flow from the slow storage tank. The new model with 5 parameters is applied to 92 catchments for simulating daily streamflow and evaporation and compared with AWMB, SACRAMENTO, and SIMHYD models. The performance of the model is slightly better than HyMOD but is not better compared with the 14-parameter model (SACRAMENTO) in the calibration, and does not perform as well in the validation period as the 7-parameter model (SIMHYD) in some areas, based on the NSE values. The linkage between the PDM–CN model and long-term water balance model is also presented, and a two-parameter mean annual water balance equation is derived from the proposed PDM–CN model.