This paper reviews hydrologic processes in the permafrost regions of northern North America. Much work has recently been done at specific experimental plots to parallel the progress in laboratory investigations, improving our understanding of the heat and water fluxes in thawed and frozen grounds, infiltration in frozen soils, evaporation in a cold environment, interaction between snow and its frozen substrate, and the dynamics of storage in the active layer. Field research on permafrost slopes and in northern research basins adds to our knowledge of permafrost groundwater hydrology, runoff generating processes, river freeze‐up and breakup processes and allows more precise definition of basin water balance. Sufficient hydrometric data are now available to analyse the streamflow characteristics in an area with permafrost, and more work should be done along this line. It is urged that process studies be continued to gain a better understanding of the effect of permafrost upon the hydrologic cycle. Further research is needed to predict the impacts of human activities on the movement and redistribution of water.