Dynamically downscaled climate change signals due to increased atmospheric CO2 are investigated for three California basins. The downscaled signals show strong elevation dependence, mainly due to elevated freezing levels in the increased CO2 climate. Below 2.5 km, rainfall increases by over 150% while snowfall decreases by 20--40% in the winter. Above 2.5 km, rainfall and snowfall both increase in the winter, as the freezing levels appear mostly below this level. Winter snowmelt increases in all elevations due to warmer temperatures in the increased CO2 climate. Reduced snowfall and enhanced snowmelt during the winter decreases snowmelt-driven spring runoff below the 2.5 km level, where the peak snowmelt occurs one month earlier in the increased CO2 climate. Above 2.5 km, increased winter snowfall maintains snowmelt-driven runoff through most of the warm season. The altered hydrologic characteristics in the increased CO2 climate affect the diurnal temperature variation mainly via snow-albedo-soil moisture feedback. ¿ 2001 American Geophysical Union