To improve the capability of numerical modeling of climate-groundwater interactions, a groundwater component and new surface/subsurface runoff schemes were incorporated into the regional climate model RegCM3, renamed RegCM3_Hydro. 20-year simulations from both models were used to investigate the effects of groundwater dynamics and surface/subsurface runoff parameterizations on regional climate over seven river basins in China. A comparison of results shows that RegCM3_Hydro reduced the positive biases of annual and summer (June, July, August) precipitation over six river basins, while it slightly increased the bias over the Huaihe River Basin in eastern China. RegCM3_Hydro also reduced the cold bias of surface air temperature from RegCM3 across years, especially for the Haihe and the Huaihe river basins, with significant bias reductions of 0.80~C and 0.88~C, respectively. The spatial distribution and seasonal variations of water table depth were also well captured. With the new surface and subsurface runoff schemes, RegCM3_Hydro increased annual surface runoff by 0.11 0.62 mm d 1 over the seven basins. Though previous studies found that incorporating a groundwater component tends to increase soil moisture due to the consideration of upward groundwater recharge, our present work shows that the modified runoff schemes cause less infiltration, which outweigh the recharge from groundwater and result in drier soil, and consequently cause less latent heat and more sensible heat over most of the basins.