We report on our on-going effort to develop and optimize a Western Land Data Assimilation System (WLDAS) and present preliminary results on applying WLDAS for studying groundwater sustainability. WLDAS is an instance of NASA’s Land Information System framework running the Noah_Multiparameterization (MP) land surface model which simulates groundwater storage variations along with many other advanced features. WLDAS is configured at 1 km spatially and covers the area west of the Mississippi River. The high-resolution allows better representation of complex terrains and integration of high resolution forcing and remote sensing data such as those retrieved from the Airborne Snow Observatory. We present results of retrospective simulations (1979-2017) of Noah_MP driven by downscaled North American Land Data Assimilation System (NLDAS2) forcing data, with a focus on groundwater recharge and its relationship with environmental controls. Impacts of ET algorithms on groundwater along with evaluation of results using in situ soil moisture, groundwater and terrestrial water storage data derived from the Gravity Recovery and Climate Experiment (GRACE) mission are also presented.