Abstract The absence of the Drake Passage (DP) gateway in coupled models generally leads to vigorous Antarctic bottom water (AABW) formation, Antarctic warming, and the absence of North Atlantic deep-water (NADW) formation. Here the authors show that this result depends critically on atmospheric moisture transport by midlatitude storms. The authors use coupled model simulations employing geometries different only at the location of DP to show that oceanic circulation similar to that of the present day is possible when DP is closed and atmospheric moisture transport values enhanced by Southern Ocean storm activity are used. In this case, no Antarctic warming occurs in conjunction with DP closure. The authors also find that the changes in poleward heat transport in response to the establishment of the Antarctic Circumpolar Current (ACC) are small. This result arises from enhanced atmospheric moisture transport at the midlatitudes of the Southern Hemisphere (SH), although the values used remain within a range appropriate to the present day. In contrast, homogeneous or (near) symmetric moisture diffusivity leads to strong SH sinking and the absence of a stable Northern Hemisphere (NH) overturning state, a feature familiar from previous studies. The authors’ results show that the formation of NADW, or its precursor, may have been possible before the opening of the DP at the Eocene/Oligocene boundary, and that its presence depends on an interplay between the existence of the DP gap and the hydrological cycle across the midlatitude storm tracks.