Lakes in the Arctic are important reservoirs of heat with much lower albedo in summer and greater absorption of solar radiation than surrounding tundra vegetation. In the winter, lakes that do not freeze to their bed have a mean annual bed temperature >0 ∘C in an otherwise frozen landscape. Under climate warming scenarios, we expect Arctic lakes to accelerate thawing of underlying permafrost due to warming water temperatures in the summer and winter. Previous studies of Arctic lakes have focused on ice cover and thickness, the ice decay process, catchment hydrology, lake water balance, and eddy covariance measurements, but little work has been done in the Arctic to model lake heat balance. We applied the LAKE 2.0 model to simulate water temperatures in three Arctic lakes in northern Alaska over several years and tested the sensitivity of the model to several perturbations of input meteorological variables (precipitation, shortwave radiation, and air temperature) and several model parameters (water vertical resolution, sediment vertical resolution, depth of soil column, and temporal resolution). The LAKE 2.0 model is a one-dimensional model that explicitly solves vertical profiles of water state variables on a grid. We used a combination of meteorological data from local and remote weather stations, as well as data derived from remote sensing, to drive the model. We validated modeled water temperatures with data of observed lake water temperatures at several depths over several years for each lake. Our validation of the LAKE 2.0 model is a necessary step toward modeling changes in Arctic lake ice regimes, lake heat balance, and thermal interactions with permafrost. The sensitivity analysis shows us that lake water temperature is not highly sensitive to small changes in air temperature or precipitation, while changes in shortwave radiation and large changes in precipitation produced larger effects. Snow depth and lake ice strongly affect water temperatures during the frozen season, which dominates the annual thermal regime of Arctic lakes. These findings suggest that reductions in lake ice thickness and duration could lead to more heat storage by lakes and enhanced permafrost degradation.