The residential areas in Kuwait City have witnessed a dramatic rise in the subsurface water table over the last three decades. In the winter seasons, when the evaporation rates are relatively low, water ponds are encountered in the low altitude lands. A pilot drainage project for the Shamiyah and Kaifan neighborhoods was constructed to lower the water table to a depth of about 4.0 m below the ground surface. The drainage system encompasses 6 pumping and 56 observation wells and it has been under continuous operation since October 1995. A numerical model has been developed to simulate the drainage process and predict the future behavior of the hydrogeological system in the project area. The model is based on the finite difference method and it employs a dual simulation mesh. It has been calibrated and the numerical results are compared with actual field measurements. The hydrologeological system has approached the semi-steady state conditions after about 9 months.