Observational estimates of precipitation and evaporation over the Arct
ic Ocean and its terrestrial watersheds are compared with correspondin
g values from the climate model simulations of the Atmospheric Model I
ntercomparison Project (AMIP). Estimates of Arctic regional mean preci
pitation from several observational sources show considerable scatter,
and the observational estimates based on gauge adjusted station data
are considerably larger than the other observational estimates. While
the AMIP model simulations of precipitation also show scatter, the ens
emble mean of the models' precipitation exceeds even the higher (gauge
-adjusted) observational estimates over the Arctic Ocean and its major
watersheds. The difference between simulated precipitation and evapor
ation (P - E), representing the net freshwater gain (runoff) by the su
rface, also exceeds the observational estimates by 44%-83% over the Ar
ctic Ocean and by generally smaller percentages over the terrestrial w
atersheds. The ensemble model mean of the annual P - E exceeds the cor
responding river discharges of the Ob and Mackenzie Rivers by 62% and
14%, respectively. The simulated P and E are highly correlated across
the AMIP models, and the interannual (as well as the seasonal) variati
ons of P and E are highly correlated in the output of most of the indi
vidual models, implying a coupling of the regional P and E in the mode
ls. The only formulational feature found to be common to the high-P (a
nd high-E) models is the use of a specified rather than a computed soi
l moisture. A preliminary examination of the reanalyses of the Nationa
l Centers for Environmental Prediction shows that the differences betw
een the reanalysis-derived P and E are closer to the observational est
imates than are the AMIP estimates. However, the magnitudes of the rea
nalysis-derived P and E, individually, are higher than the correspondi
ng observational estimates.