The Egyptian government is replacing the existing Naga Hammadi barrage, located across the Nile River some 450 km south of Cairo, with the New Naga Hammadi barrage (NNHB) to incorporate a hydropower plant and to improve conditions for river traffic. The new structure will lead to an increase in river water levels, both locally near the new barrage and upstream. The rise in river water levels will in turn result in changes in groundwater levels in the aquifer system up and downstream of the barrages. In this paper, an area is chosen, which is expected to suffer from a high groundwater table after the construction of the NNHB, to investigate the problem and propose alternatives for lowering the groundwater levels. The study area is a village called Bakhaness, with an area of 588 ha. It is located some 1.5 km upstream of the NNHB. A computer model (MicroFEM) has been used to simulate the groundwater conditions before and after construction of the NNHB. Alternatives for lowering the groundwater table are proposed, simulated and evaluated. The systems, which are assessed are a municipal sewer system, a system of perforated pipes in urban areas, and tile drainage with different values of efficiency in agricultural areas.