The evaluation shows that APSIM is suitable to use for wheat under the conditions of north-west India. APSIM does not attempt to capture the soil temperature driven effect of mulch on crop phenology. The model accurately predicted total crop seasonal evaporation and the effect of mulch however, daily Es was poorly simulated. However, grain yield was underpredicted (by 600-1000 kg ha(-1)) in treatments where the crop was subjected to water deficit stress, even though simulation of soil water dynamics, and the effect mulch on soil water content, was generally very good. The corresponding absolute RMSE values were 433 and 550 kg ha(-1) for grain yield (means 41 kg ha(-1)) and 300 and 800 kg ha(-1) for total biomass (means 10,2 kg ha(-1)). The model predicted grain yield adequately, with coefficients of determination (r(2)) of 0.91 and 0.81 with and without mulch, respectively, and prediction of total biomass was even better, with r(2) of 0.99 and 0.92. daily soil evaporation (Es), total evapotranspiration (ET) and water productivity (WPET kg ha(-1) mm(-1)), using two years of data from field experiments at Ludhiana, Punjab. The model was evaluated for its ability to predict crop development, grain yield, biomass production over time, soil water dynamics. This paper presents the results of a comprehensive evaluation of the APSIM model for its ability to simulate the effects of mulch and water management, and their interactions, for wheat in Punjab, India. Therefore, research on the interactions between residue and irrigation management on wheat crop performance and water use was initiated, using the dual approach of field experiments and crop modelling. With increasing interest in retaining crop residues on the soil surface, there is a need to evaluate their short- and long-term effects on crop yield and water and fertilizer requirements.