Study area lies in the north western coast of Egypt extending along the Mediterranean Sea. It occupies an area of about 1690 km2 it's called Fuka-Matrouh, This area is suffering of dry season in summer and flash floods in winter that impact the agricultural system as well as natural disasters in terms of human hardships and economic losses. Arc hydro model was used to derive watershed of the investigated area. In this study, remote sensing was combined with GIS environment for land and water resources assessment. Reconnaissance and semi detailed field surveys were carried out for collecting information required to produce various thematic maps; such as soil, capability, and land use and drainage system. A geographical database was stored as attributes. Modeling approaches are powerful tools for decision making in the study area. The present study aims at setting up recommendations for surface water development in terms of best sites selection and surface runoff. GIS and multi-criteria analysis were applied to locate a new dam location in study area to get the benefit for agricultural development.