Florida has hurricane season every year during May to September. Many hurricanes left neighborhoods and towns inundated. Florida’s non-dentritic surface drainage system makes it difficult to model with conventional systems.  Thanks to airborne LiDAR data collection technology and enhancements in Arc Hydro model, watershed parameters can be calculated effectively.  A study is done for Citrus County, Florida where various sources of LiDAR data are used for this purpose.  LiDAR data is imported into GIS. Very large point cloud data are processed using advanced terrain modeling techniques developed, and then high precision surface raster data is obtained. Several 3D and spatial modeling steps are performed during Arc Hydro modeling stage. At the end, obtained watershed parameters are compared with the ones obtained with traditional methods. Data further entered into an enterprise spatial database where modern surface water models can use input data automatically from database. The results are then used to update the floodplains to show hurricane risk areas during hurricanes.