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An integrated surface water and groundwater model of Mason Valley, Nevada is constructed to replicate the movement of water throughout the different components of the demand side of water resources in the Walker River system. The Mason Valley groundwater surface water model (MVGSM) couples the river/drain network with agricultural demand areas and the groundwater system using MODFLOW, MODFLOW’s streamflow routing package, as well as a surface water linking algorithm developed for the project. The MVGSM is capable of simulating complex feedback mechanisms between the groundwater and surface water system that is not dependent on linearity among the related variables. The spatial scale captures important hydrologic components while the monthly stress periods allow for seasonal evaluation. A simulation spanning an 11-year record shows the methodology is robust under diverse climatic conditions. The basin-wide modeling approach predicts a river system generally gaining during the summer irrigation period but losing during winter months and extended periods of drought. River losses to the groundwater system approach 25% of the river’s annual budget. Reducing diversions to hydrologic response units will increase river flows exiting the model domain, but also has the potential to increase losses from the river to groundwater storage.