In recent decades animal agriculture in the U.S. has moved from small, distributed operations to large, Concentrated Animal Feeding Operations (CAFOs). CAFOs are defined by federal regulations based on animal numbers and confinement criteria. Because of the size of these operations, the excessive amount of manure generated is typically stored in lagoons, pits, or barns prior to field application or transport to other farms. Water quality near CAFOs can be impaired through the overflow of lagoons, storm runoff, or lagoon seepage. Assessing water quality impacts of CAFOs in a modeling framework has been difficult because of data paucity. A CAFO lagoon module was developed to assess lagoon overflow risk, groundwater quality, and ammonia emissions of a dairy lagoon. A groundwater quality assessment of a Dairy Lagoon in Lynden Washington was used to calibrate and validate the groundwater quality model. Groundwater down stream of the lagoon was negatively impaired. The long-term effects of this lagoon on water quality were explored as well as the effectiveness of improving the lagoon lining to reduce seepage. This model can be used to improve understanding of the impacts of CAFO lagoon seepage and develop sustainable management practices at the watershed scale for these key components of the agricultural landscape.