Recent observations suggest Antarctic Intermediate Water (AAIW) properties are changing. The impact of such variations is explored using idealised perturbation experiments with a coupled climate model, HadCM3. AAIW properties are altered between 10 and 20 degrees S in the South Atlantic, maintaining constant potential density. The perturbed AAIW remains subsurface in the South Atlantic, but as it moves northwards, it surfaces and interacts with the atmosphere leading to density anomalies due to heat exchanges. For a cooler, fresher AAIW, there is a significant decrease in the mean North Atlantic sea surface temperature (SST), of up to 1 degrees C, during years 51-100. In the North Atlantic Current region there are persistent cold anomalies ...