There is currently no doubt about the existence of a widespread hydrological network under the Antarctic Ice Sheet, which lubricates the ice base and thus leads to increased ice velocities. Consequently, ice models should incorporate basal hydrology to obtain meaningful results for future ice dynamics and their contribution to global sea level rise. Here, we introduce the balanced water layer concept, covering two prominent subglacial hydrological features for ice sheet modeling on a continental scale: the evolution of subglacial lakes and balance water fluxes. We couple it to the thermomechanical ice-flow model RIMBAY and apply it to a synthetic model domain. In our experiments we demonstrate the dynamic generation of subglacial lakes and their impact on the velocity field of the overlaying ice sheet, resulting in a negative ice mass balance. Furthermore, we introduce an elementary parametrization of the water flux–basal sliding coupling and reveal the predominance of the ice loss through the resulting ice streams against the stabilizing influence of less hydrologically active areas. We point out that established balance flux schemes quantify these effects only partially as their ability to store subglacial water is lacking.