Permafrost is typically considered as an impermeable barrier to groundwater flow; however, unfrozen zones (taliks) can develop within permafrost environments and act as conduits for groundwater flow. In the High Arctic, perennially flowing springs have been observed at faults that serve as preferential pathways for focused groundwater discharge and concomitant heat advection and potential solute transport. However, the specific effects of faults on the distribution of permafrost in arctic spring systems remain poorly understood. The overall goal of the present study was to assess the influence of faults on groundwater flow and energy transport patterns in permafrost regions using cryohydrogeological model simulations. A range of permafrost formation and thaw scenarios were simulated in tandem with a suite of fault parameters (e.g., fault width, permeability) to investigate interactions among groundwater flow, fault conditions, and permafrost. We particularly explored the competing, orthogonal heat fluxes (radial conduction vs. along-fault advection) that determine whether faults freeze or remain hydraulically active as hydrothermal taliks. The results will provide new insights into cold-region hydrogeological processes and improve predictions of permafrost evolution in faulted environments under changing climatic conditions.