This paper compares state-space and input-output realizations for nonlinear discrete-time dynamic models. For linear models, these two realizations are essentially equivalent and their structures are closely related, but these statements do not hold for nonlinear models. We illustrate this point with simple, realistic examples for which only one of the two realizations exists or for which both exist but their structures are profoundly different. Overall, the main point of this paper is the importance of the choice of realization in the development of nonlinear dynamic models. (C) 2003 Elsevier Ltd. All rights reserved.