Large numbers of dams are planned or constructed for hydroelectric power production, water supply, and flood control in many rivers around the world. While the social and environmental impacts of dams are now well-understood, there is little knowledge about the effects of dams on groundwater-surface water interactions in a complex lake–river-aquifer system. This study adopts a three-dimensional groundwater numerical model to quantify the potential impacts of dam construction, on regional groundwater flow system, exemplified by the proposed Poyang Lake Hydraulic Dam (PLHD) in China. Once implemented, the PLHD will regulate lake levels, artificially controlling the lake inundation area during the recession season (September-October) and the dry season (November-December). Modeling results indicated that the increase in lake infiltration induced by PLHD regulation would alter the regional water exchange pattern. The PLHD regulation will likely enhance the groundwater storage by 20.44 % in the general dry year (i.e., 2018), alleviating 78.1 % of the groundwater deficit in the extreme dry year (i.e., 2019). Additionally, the response of groundwater dynamics to the PLHD regulation exhibits significant spatial differences between the upstream and downstream areas of the dam, primarily depending on topographical changes. Overall, the PLHD regulation is most likely to impact groundwater levels across an area of approximately 5,700 km2, and the associated groundwater storage is anticipated to reach a stable state, under future long-term regulation. Our findings may guide policy-makers wishing to develop more suitable PLHD scheduling plans and floodplain protection strategies by providing reliable information regarding groundwater storage change and ecosystem succession.