This study presents an improved Tank in Series Reactor (TSR) Proton Exchange Membrane (PEM) fuel cell model with mass and energy balance equations accounting for evaporation and condensation in cathode channels. The TSR model includes the modified charge balance equation suitable for potentiostatic fuel cell operation mode. Polarization curves calculated with the improved model agree with experimental data from the literature. The developed TSR model is able to predict the limiting two-dimensional profiles in PEMFC. Simulation results illustrate the influence of co-current and counter current mode on PEM fuel cell performance. Copyright (C) 2011, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.