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The rainfall data used in the hydrology analysis is obtained from the precision of rainfall data measurement and the condition of the rain station. The higher density of rain station network, the data obtained will be more accurate, but it should be noted other aspects such as economic aspects. The best network is obtained by conducting a rationalization analysis to get the most effective number and location of rain station This research obtain rainfall data from satellite for analysis as a solution to the problem of data limitations while others only use ground data. First, the existing rain station network is evaluated whether it comply with WMO (World Meteorological Organization) standards or not. Then regression analysis is carried out on ground and satellite rainfall and water discharge data to find out the correlation between them. Next, the rain station network is rationalized using Kagan Rodda method, which mean there are some changes in the number and location of the station. The regression analysis is then carried out on the new rain station network. This network is then calibrated using measured water discharge data. This research is located in Kemuning River Catchment Area, Madura Island.