Groundwater modeling was used as an effective management tool by simulating the regional groundwater flow in the lower Palar River basin, in southern India. The study area is characterised by heavy abstraction of groundwater for agricultural, industrial and drinking water supplies. There are three major pumping stations on the Palar riverbed apart from a number of wells distributed over the area. Finite-difference computer code MODFLOW was used to simulate the groundwater flow in the study area. The model simulates groundwater flow over an area of about 392 km2 with 70 rows, 40 columns, and two sublayers. The model was calibrated for steady- and transient-state conditions.