The requirements for hydrological models have increased considerably during the previous decades to cope with the resolution of extensive remotely sensed data sets and a number of demanding applications. Existing models exhibit deficiencies such as overparameterization, the lack of an effective technique to integrate the spatial heterogeneity of physiographic characteristics, and the nontransferability of parameters across scales and locations. A multiscale parameter regionalization (MPR) technique is proposed as a way to address these issues simultaneously. Using this technique, parameters at a coarser scale, in which the dominant hydrological processes are represented, are linked with their corresponding ones at a finer resolution in which input data sets are available. The linkage is done with upscaling operators such as the harmonic mean, among others. Parameters at the finer scale are regionalized through nonlinear transfer functions which link basin predictors with global parameters to be determined through calibration. MPR was compared with a standard regionalization (SR) method in which basin predictors instead of model parameters are first aggregated. Both methods were tested in a basin located in Germany using a distributed hydrologic model. Results indicate that MPR is superior to SR in many respects, especially if global parameters are transferred from coarser to finer scales. Furthermore, MPR, as opposed to SR, preserves the spatial variability of state variables and conserves the mass balance with respect to a control scale. Cross-validation tests indicate that the transferability of the global parameters to ungauged locations is possible.