Abstract. Accurately capturing complex soil-water and groundwater interactions is vital for describing the coupling between subsurface/surface/atmospheric systems in regional-scale models. The non-linearity of the Richards' equation for water flow, however, introduces numerical complexity to large unsaturated-saturated modeling systems. An alternative is to use quasi-3D methods with a feedback coupling scheme to join practically sub-models with different properties, such as governing equations, numerical scales, and dimensionalities. In this work, to reduce the non-linearity in the coupling system, two different forms of the Richards' equation are switched according to the soil-water content at each numerical node. A rigorous multi-scale water balance analysis is carried out at the phreatic interface to link the soil water and groundwater models at separated spatial and temporal scales. With a moving-boundary approach at the coupling interface, the non-trivial coupling errors introduced by the saturated lateral fluxes are minimized for problems with dynamic groundwater flow. It is shown that the developed iterative feedback coupling scheme results in significant error reduction, and is numerically efficient for capturing drastic flow interactions at the water table, especially with dynamic local groundwater flow. The coupling scheme is developed into a new HYDRUS package for MODFLOW, which is applicable for regional-scale problems.