A Coupled Lake-Atmosphere Model (CLAM) was developed based on two existing, state-of-the-art dynamical models, namely the Regional Atmospheric Modeling System (RAMS), and the oceanic S-Coordinate Rutgers University Model (SCRUM). This coupled model provides a unique tool to analyze atmospheric and lake dynamics, as well as lake-atmosphere interactions and feedback under various environmental background conditions. While the original motivation for developing this model was to better estimate the spatial and temporal variation of evaporation from Lake Kinneret, it can also be used to provide high-resolution dynamical fields to a Lagrangian Particle Dispersion Model (LPDM), which could be employed to study dispersion of sediments, chemicals, and biological organisms in lakes, and associated aspects of air and water pollution in (and near) them. The performance of the model was evaluated against a data set collected in Lake Kinneret. Because this lake is located in a region with complex topography and strong atmospheric mesoscale processes, lake-atmosphere interactions and feedback in this region are particularly strong, and difficult to simulate. Nevertheless, the model reproduces very well observations of various meteorological and hydrodynamical conditions collected in and near the lake, emphasizing its strong potential use