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The Tapi is a major interstate, westerly flowing river with 14 tributaries, of which the left bank tributaries support large settlements in Maharashtra State. It has been identified as one of the water scarce basins of India. There are many dams and barrages in the basin to store and divert water for agricultural and industrial purposes. This results in low flow and deterioration of water quality in the region particularly in non‐monsoon months. This paper presents the details of a GIS‐based rainfall‐runoff modelling study carried out to assess the runoff flow in the sub‐catchments and at the outlet of the Tapi Basin. Using mean monthly rainfall data at seven gauging stations in the basin, and land use and soil characteristics as reported by the Central Pollution Control Board (CPCB), the annual runoff flow at the watershed outlet was estimated to be 18,814 MCM. A comparison of runoff generated in the sub‐catchments and the observed runoff at Central Water Commission (CWC) monitoring stations is presented. Results of the simulation indicate that the reduced river flows caused by the number of dams/reservoirs constructed upstream are useful as a guideline for the development of environmental flow regulations for rivers and streams in the Tapi Basin. [ABSTRACT FROM AUTHOR]