DEM is widely used in distributed hydrological models as the basic topographic information carrier. Because of various man-made and natural causes, many depressions of every size (including depressions and flat areas) are widespread in DEM. That causes an obstacle for river network generation and concentration calculation. So, preprocessing depressions in DEM is the premise of all the other work in flood simulation. And it has become a hot issue to deal with depressions problem quickly and efficiently in digital hydrology research. In this paper, a innovative depression filling algorithm(Overflow method)was proposed to process depressions, and an improved outlet-collect flow direction mode was put forward to assign tiny slopes for flat area. In this way, water was exported from flat areas fluently. Comparing with traditional algorithms, this method is simple and clear. There is no need to calculate the flow direction and it is easy to deal with depressions nesting structure. This method is proved correct and reliable after programming and example verification. The difference between the original DEM and the processed one is tiniest. DEM processed by this method could be used for flood concentration calculation in distributed hydrological models in a watershed.