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• Paired watershed is effective in studying runoff response to woody encroachment. • Rooting zone soil moisture increased after converting juniper woodland to grassland. • Juniper removal in central Great Plains resulted in fivefold increase in runoff. Mechanical removal of encroached juniper (Juniperus spp.) is a common practice to restore native grasslands. However, the hydrological responses to grassland restoration remain mostly unquantified for the climate transition zone in the southern Great Plains of the USA where ecosystem evapotranspiration is highly sensitive to the change of vegetation functional type. We used a paired watershed approach to directly quantify the impact of mechanical removal of eastern redcedar (Juniperus virginiana L., redcedar) and restoration to native prairie or establishment of switchgrass (Panicum virgatum L.) on root zone soil moisture and event-based runoff for eight years including three main phases - calibration, transition, and restored grassland in north-central Oklahoma, USA. Results showed that the root zone soil water storage on average increased 1.6 and 1.9 times for restored prairie and switchgrass, respectively, after juniper removal. The regression model estimation based on the relationships established in the calibration phases between event-based runoff from control watershed and the treatment watersheds found that the restored prairie and switchgrass production system increased annual runoff by 4.46 and 4.54 times, respectively. These results indicated that both soil moisture and runoff are highly responsive to land use change in the southern Great Plains. Reestablishment of herbaceous dominance by mechanically removing encroached woody species is closely followed by restoration of soil moisture dynamics and watershed runoff regime. [ABSTRACT FROM AUTHOR]