Steady- and transient-state simulations of groundwater flow and particle movement in the sub-watershed of the river Labe in Děčín town was carried out using Visual MODFLOW software. The simulations were performed for calibration and for the scenarios that the change in the water level of the river Labe was undergoing. Steady-state simulation was carried out for the sake of calibration of model outputs. For transient simulation, two different scenarios were considered in order to investigate the response of the aquifer system to the stresses applied on surface water of the river. The simulation results have shown that the surface water and groundwater interactions, and the subsequent particle movement were affected by the stresses applied on the surface water in the river Labe. The first scenario involved the rapid recharge of surface water to the aquifer in the vicinity of the river while particles still move towards the river at the places far away from the river. At the end of the second scenario, particles still tend to move towards the river slowly and finally tend to stay within the aquifer as equilibrium of hydraulic gradient is reached between the surface and groundwater levels. The time series graphs of hydraulic heads at all observation wells show that the groundwater level in the surrounding aquifer rises significantly as a result of recharges from the river. The local water balance of the study area was calculated and expressed as the rates of water entering and leaving the system. At the end of the second scenario, the difference between the rate of flow into and out of the model area was 0.73 m(3) day(-1).