To simulate ice and water circulation in Lake Erie over a yearly cycle, a Great Lakes Ice-circulation Model (GLIM) was developed by applying a Coupled Ice-Ocean Model (CIOM) with a 2-km resolution grid. The hourly surface wind stress and thermodynamic forcings for input into the GLIM are derived from meteorological measurements interpolated onto the 2-km model grids. The seasonal cycles for ice concentration, thickness, velocity, and other variables are well reproduced in the 2003/04 ice season. Satellite measurements of ice cover were used to validate GLIM with a mean bias deviation (MBD) of 7.4%. The seasonal cycle for lake surface temperature is well reproduced in comparison to the satellite measurements with a MBD of 1.5%. Additional sensitivity experiments further confirm the important impacts of ice cover on lake water temperature and water level variations. Furthermore, a period including an extreme cooling (due to a cold air outbreak) and an extreme warming event in February 2004 was examined to test GLIM's response to rapidly-changing synoptic forcing.