One of the main limiting factors to the accuracy of large scale groundwater models is the scarcity of hydraulic data. High-resolution Airborne Electromagnetic Methods (AEM) are capable of mapping the electrical resistivity structure of the subsurface in great detail and covering large areas in short time and on a limited budget. As such, there is great potential in integrating AEM data in groundwater modeling as a supplementing source of an extensive amount of information. We have developed several novel techniques that in combination allows for bringing groundwater and AEM models much closer together, i.e.: (1) a novel, scalable inversion engine that allows the AEM inversion to handle arbitrarily large areas at a time; (2) the spatially-decoupled inversion approach, which decouples the inversion model from the acquisition points and can operate on the same grid/voxel cells as the groundwater model; (3) a custom regularization scheme that allows for producing geophysical models with sharp vertical/horizontal resistivity transitions. In this study we present the very first application of the sharp spatially-decoupled inversion on an AEM survey flown for improving the groundwater model in the Kasted area, in the north of Aarhus (Denmark).