Gravity Recovery and Climate Experiment (GRACE) derived groundwater storage (GWS) data are compared with in-situ groundwater levels from five groundwater basins in Jordan, using newly gridded GRACE GRCTellus land data. It is shown that (1) the time series for GRACE-derived GWS data and in-situ groundwater-level measurements can be correlated, with R2 from 0.55 to 0.74, (2) the correlation can be widely ascribed to the seasonal and trend component, since the detrended and deseasonalized time series show no significant correlation for most cases, implying that anomalous signals that deviate from the trend or seasonal behaviour are overlaid by noise, (3) estimates for water losses in Jordan based on the trend of GRACE data from 2003 to 2013 could be up to four times higher than previously assumed using estimated recharge and abstraction rates, and (4) a significant time-lagged cross correlation of the monthly changes in GRACE-derived groundwater storage and precipitation data was found, suggesting that the conventional method for deriving GWS from GRACE data probably does not account for the typical conditions in the study basins. Furthermore, a new method for deriving plausible specific yields from GRACE data and groundwater levels is demonstrated.