Reactive power and supply unbalance  compensation in power distribution network is a key factor in improving quality at user end. Further, the control techniques applied to the DSTATCOM play major role in its performance. A Distribution STATic COMpensator (DSTATCOM) has been proposed for compensation of reactive power and unbalance caused by various loads in distribution system. An evaluation of three different methods has been made to derive reference currents for a DSTATCOM. These methods are an instantaneous reactive power theory (IRP), SRF theory and Instantaneous current component theory. These schemes have been simulated under MATLAB environment using Sim Power system toolboxes. Simulation and experimental results demonstrate the performance of these schemes for the control of DSTATCOM.