In 1971, M. M. Peixoto [15] introduced an important topological invari
ant of Morse-Smale flows on surfaces, which he called a distinguished
graph X associated with a given flow. Here we show how the Peixoto in
variant can be essentially simplified and revised by adopting a purely
topological point of view connected with the embeddings of arbitrary
graphs into compact surfaces. The newly obtained invariant, X-R, is a
rotation of a graph X generated by a Morse-Smale flow. (a rotation R i
s a cyclic order of edges given in every vertex of X.) The invariant X
-R 'reads-off' the topological information carried by a flow, being in
a one-to-one correspondence with the topological equivalence classes
of Morse-Smale flows double dagger. As a counterpart to the equivalenc
e result we prove a realization theorem for an 'abstractly given' X-R.
(Our methods are completely different from those of Peixoto and they
clarify the connections between graphs and flows on surfaces.) The ide
a of 'rotation systems' on graphs can be further exploited in the stud
y of recurrent flows (and foliations) with several disjoint quasiminim
al sets on surfaces [10].