The Large Scale Catchment Model has been developed to predict the responses in stream yield and salinity to changes in land use and climate in southwestern Western Australia. In this paper it is used to simulate, for one small forested catchment, the hydrological consequences that might be associated with a doubling of the atmospheric carbon dioxide concentration. The simulations assume that the region will experience a decrease in the amount of winter rainfall (with an increase in rainfall intensity) and an increase in potential evaporation. The results suggest that the assumed change in climate has the potential to lead to a 45% decrease in stream runoff in this catchment. About two-thirds of this decrease is associated with the reduction in rainfall; the remainder being associated with the increased potential evaporation. Furthermore, stream salinity is predicted to increase by about 8%, mostly in response to the enhanced evaporation regime.