The Thua Thien-Hue province is located in the centre of Vietnam. It is characterized by the short distance between the mountains in the west and the coast of the South China Sea in the east. Two large rivers flow through the province, fed by multiple smaller rivers from the mountains. The Bo River flows through the northern part of the province and ends up in the Cau Hai lagoon. The Huong River is the largest of the two and flows through Hue city ending in the Cau Hai lagoon. The coastal zone of the Thua Thien-Hue province knows a lot of water related problems, like salt intrusion and drought in the dry season and both pluvial and alluvial flooding in the rainy season. Tackling these problems requires an integrated approach that considers all problems, functions and stakeholders. This project will aim to apply a Framework for Integrated Water Management to the Thua Thien-Hue province to minimize the water related problems in the future. This framework assigns different return periods for flooding per area. An area with a high population density will suffer more damage during a flood than a rice paddy, and should have a smaller chance of flooding in order to make the water defence system economically justifiable. This way, a map is created that indicates the desired chance on flooding throughout the coastal, flood prone area of the Thua Thien-Hue province. Using a SOBEK 2D model, the flooding can be simulated. The results from this model show that the amount of water that enters the area is too large to apply traditional protection by raising dikes. Also, most houses are built near the riverbanks, making the implementation of dikes problematic. Two possible solutions were considered. The first, consisting of two bypasses, showed unrealistic as the capacity of the second bypass was insufficient. The second scenario, called “Lake Hue”, uses a reservoir as a retention area during extreme events. A dam regulates the discharge towards Hue City while a spillway towards an area with a lower population density takes care of excess water. An initial cost benefit analysis, using the results from the SOBEK model, indicates a payback time of fifteen years. After the design lifetime of 50 years, the initial investment is returned twofold.