Wetlands of the Prairie Pothole Region exist in a matrix of grassland dominated by intensive pastoral and cultivation agriculture. Recent conservation management has emphasized the conversion of cultivated farmland and degraded pastures to intact grassland to improve upland nesting habitat. The consequences of changes in land-use cover that alter watershed processes have not been evaluated relative to their effect on the water budgets and vegetation dynamics of associated wetlands. We simulated the effect of upland agricultural practices on the water budget and vegetation of a semipermanent prairie wetland by modifying a previously published mathematical model (WETSIM). Watershed cover/land-use practices were categorized as unmanaged grassland (native grass, smooth brome), managed grassland (moderately heavily grazed, prescribed burned), cultivated crops (row crop, small grain), and alfalfa hayland. Model simulations showed that differing rates of evapotranspiration and runoff associated with different upland plant-cover categories in the surrounding catchment produced differences in wetland water budgets and linked ecological dynamics. Wetland water levels were highest and vegetation the most dynamic under the managed-grassland simulations, while water levels were the lowest and vegetation the least dynamic under the unmanaged-grassland simulations. The modeling results suggest that unmanaged grassland, often planted for waterfowl nesting, may produce the least favorable wetland conditions for birds, especially in drier regions of the Prairie Pothole Region. These results stand as hypotheses that urgently need to be verified with empirical data.