Water flow simulations for environmental problems often require local detailed analyses for better understanding and accurate prediction of the fate of pollutant in water bodies. This study deals with the development and application of a two-dimensional flow an dispersion model to the coastal water area to find out possible changes due to the wide port development plan. As far as the spatial discretization is concerned, the finite element method is attractive because of its flexibility and ability to naturally treat complex coastal geometries. The model uses finite element theory and the Galerkin weighted-residual approach as its basis. Developed model is applied to the Busan New harbor Construction site. Results from the model were compared with the measured water level and flows in four stations. The flow pattern by the model shows to be similar to the observed data away from the construction site where the flow is not affected. From the simulation results, it is concluded that the model may be useful for numerous other studies for planning and management purposes, especially flow and pollution dispersion in the coastal water bodies where the flow is so complicated