In the subarctic it is common to encounter a two-layer flow system consisting of a porous organic cover overlying frozen or unfrozen mineral soils with much lower hydraulic conductivities. The simple lumped reservoir parametric, or semidistributed land-use-based runoff processes (SLURP), model was adapted to simulate runoff generated by such a flow system from an upland shrub land to an open woodland downslope. A subalpine site in Wolf Creek, Yukon, Canada, was subdivided into two aggregated simulation areas (ASA), each being a unit characterized by a set of parameters. The model computes the vertical water balance and flow generation from several storages, and then routes the water out of the ASA. When applied to the 1999 snowmelt season, the model simulated the very low lateral flow and a large increase in storage in the mineral soil, as was observed in the field. The model was used to assess the sensitivity of the two-layer flow system under a range of temperature, snow cover, and frost conditions. Results show that within the range of possible climatic conditions, the hydrologic system is unlikely to yield significant runoff across the subalpine tree line, but if ground ice is abundant in the soil pores, percolation will be limited and fast flow from the surface layer is enhanced.