A two-dimensional numerical experiment and field observations were conducted to evaluate changes in sea water movement and the water quality environment related to comprehensive projects of waterfront development around Kwangyang Bay on the south coast of Korea. Tidal flow velocities, especially in the western part of the bay, were considerably slower as a result of the development projects. Accordingly, the seawater exchange ratio reduced from 38.7% to 26.3%. The impact of dredging work on the water quality environment was much stronger than expected. Furthermore, after the completion of the industrial parks and container-exclusive wharfs, COD from the waste water treatment plant will be dispersed extensively into the adjacent water at a level of less than 0.1 mg/l for up to 142.5 $ extrm{km}^2$. Therefore, consistent monitoring and management of the water quality environment is strongly recommended.