Warming trends in Patagonia and severe droughts in recent decades are still poorly understood in terms of their hydrological effects. The effects of climate change on water dynamics in addition to human water management could generate a future water scarcity scenario in one of the regions with the most abundant water resources of Chile. The aim of this work is to focus on assessing the impacts of warming trends on water dynamics in the Patagonian Simpson River watershed during the last two decades. We estimated anomalies in the main components of water balance such as precipitation (P), snow cover (SC), evapotranspiration (ET) and streamflows (Q) as well as surface variables and meteorological forcing (i.e. air temperature - Ta, solar radiation -RS, land surface temperature - LST). The processed data were obtained from remote sensing, reanalysis and in-situ data. We implemented a trend analysis for each variable in the period 2000-2019 at monthly, seasonal and annual scale. Results showed a warming trend in Ta and LST of about 1.2 degrees C and 2.1 degrees C, respectively, concentrated mainly in the autumn and winter seasons. Although P showed non-significant trends, Q diminished significantly at rates of more than 9.1 m3/s/decade, representing 36% of its historical mean. However, the decreases in Q are seen only in the maximum (spring) and minimum (summer) seasonal flows. These decreases are explained by significant increases in ET, led by a positive feedback of its drivers (LST, Ta and RS), which is directly linked to the impact of warming and an associated vegetation greenness in the watershed, as well as a decrease in SC during winter that feeds the Simpson River during spring and summer. The decrease in Q is reinforced by the intensifi-cation of water withdrawals in recent decades, as shown by an accelerated increase in water rights for agricultural and drinking uses. In a context of water scarcity and increasing and extreme droughts, this work contributes to further understanding water dynamics in western Patagonia, providing support for policy and decision-making when defining sustainable productive practices at watershed scale. (C) 2021 Published by Elsevier B.V.