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Assessment of water yields from watersheds into streams and rivers is critical to managing water supply and supporting aquatic life. Surface runoff typically contributes the most to peak discharge of a hydrograph while subsurface flow dominates the falling limb of hydrograph and baseflow contributes to streamflow from shallow unconfined aquifers primarily during the non-rainy season. The Water Erosion Prediction Project (WEPP) model is a physically-based, distributed-parameter, continuous-simulation model. Recent improvements to WEPP include enhanced computation of evapotranspiration (ET) by incorporating the Penman-Monteith method into the model, and improved calculation of subsurface lateral flow by properly setting a restrictive layer and soil anisotropic ratios. These modifications have substantially improved the performance of the WEPP model for forested watersheds. In order to further enhance the model applicability, a baseflow component needs to be incorporated to adequately represent hydrologic conditions where significant quantities of ground water flow to streams.