This article describes molecular-level simulations of the adsorption isotherm and elastic properties for a Wyoming Na-montmorillonite using the General Utility Lattice Program. The selected clay mineral includes isomorphous substitutions in both the silica tetrahedral and octahedral gibbsite sheets. The resulting negative charges are balanced by Na+ cations. The authors have investigated the importance of different interatomic potentials in understanding the adsorption of water molecules (at ambient temperature, 300K). A unique combination of NPT and Grand Canonical ensemble simulations using Core–Shell potential shows intra-layer adsorption, while the same approach based on empirical CLAYFF potential produces only interlayer water adsorption. There is a correspondingly large difference in the theoretical elastic modulus normal to the clay sheets using the two different sets of force potentials. This article discusses the underlying reasons for these differences and reviews the experimental evidence supporting intra-layer water absorption in montmorillonite.