Simulated monthly streamflow sequences in a six-satellite-station configuration within Tahoe-Truckee river system in California-Nevada, were examined in terms of (a) salient features of methodology, and (b) water budget. Problems encountered include imbalance of water budget, and issues associated with handling non-current historic flow sequences. Study has revealed critical needs for further research in the premise of streamflow synthesis as related to a multi-site situation. These include (i) incorporation of hydrologic water-budget in the rationale for simulation, (ii) more robust statistical techniques for testing adequacy and reliability of simulated sequences, (iii) experimentation with non-Markovian generating schemes, (iv) sample length requirements in relation to the bounds of simulated sequences, and (v) influence of smoothing the parameter estimates.