Proper water and thermal management is essential for obtaining high performance of proton exchange membrane fuel cells (PEMFCs). A steady, two-dimensional water and thermal management model was developed, aiming at considering pressure effects (i.e. the effects of local pressure on the cell performance), pressure drop, open circuit voltage variation with stack temperature, water vapour effects on membrane conductivity, which made the model physically more reasonable and more suitable for various operating conditions. The model could predict the distributions of a series of important parameters along the flow channel, and thus the effects of various operating and design parameters on the fuel cell performance could be investigated easily by numerical trial-and-error method. The modelling results compared well with the available experimental results from the literatures. The results also showed that the humidification of both anode and cathode is crucial for the performance of PEMFCs. The model could be a very useful engineering tool for the optimization of PEMFCs. Copyright (c) 2005 John Wiley & Sons, Ltd.