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Surface water and groundwater systems are connected in most landscapes. Streams interact with groundwater in three basic ways: streams gain water from inflow of groundwater through the streambed, streams lose water by outflow through the streambed, or they do both depending upon the location along the stream. It is the groundwater contribution that keeps streams flowing between precipitation events or after snowmelt. For a stream to gain water, the elevation of the water table in the vicinity of the stream must be higher than the streamwater surface. For a stream to lose water to groundwater, the water table must be below the elevation of the stream-water surface in the vicinity of the stream. If the water table has large variations during the year, a stream segment could receive water from groundwater for a portion of the year and lose water to groundwater at other times.

Surface-water bodies such as lakes and wetlands can receive groundwater inflow, recharge groundwater, or do both. The movement of water between groundwater and surface-water systems leads to the mixing of their water qualities. High quantities of nutrients or other dissolved chemicals in surface water can be transferred to the connected groundwater system.