Ground water is an important source of water for drinking, irrigation and industrial purposes. To maintain a sustainable agricultural production and to arrest the depletion of water table, there is a need for micro level study of groundwater potential. In this work, an attempt has been made to estimate the amount of ground water for the Gundar river basin, which can be used to plan a suitable usage of ground water. Visual MODFLOW was used for groundwater flow simulation in the study. The model when applied to the study area showed the permissible error of ± 10–20% in 87.3% of computed values from the actual values of well heads. The results showed that the flow direction more or less coincided with the general slope and there was an inflow and outflow across the western and eastern boundaries. The coastal alluvial formations showed the intrusion of seawater into inland freshwater aquifers.