This paper describes the development of a process-based water and energy balance model for use in high latitudes under both summertime and wintertime conditions. The model is developed as a part of the Boreal Ecosystem-Atmosphere Study (BOREAS). The model differs from its original version in the representation of hydrological processes specific to climatic and ecologic conditions in high latitudes: the impact of an organic layer on the water and energy balance of the boreal forest; the parameterization of frozen ground and snow accumulation and ablation; and the effect of open water bodies on the calculation of the radiative energy and water budget. The model can be run either in a fully distributed or an aggregated statistical mode. The resulting macroscale hydrological model can be used, off line, to study the energy and water balance of the boreal forest and potentially can be used as a land-atmosphere parameterization in atmospheric models.