This thesis documents the work undertaken to investigate and improve the theoretical and practical requirements for two-dimensional hydrodynamic modelling of coastal and estuarine areas, in particular to the inter-related aspects of: - wetting and drying of relatively large intertidal areas, and - the influences of waves on both current generation and variations in mean water level. The work outlined in this thesis began as a result of a perceived lack of understanding and confidence in the application of finite element models to coastal and estuarine situations. In response to this observation an investigation into the modelling parameters, particularly those that affect model performance during the simulation of wetting and drying, was undertaken. This initial investigation into the effect of these parameters upon model performance forms the first component of this study. Testing was performed to provide a quantitative assessment of the effect of these parameters upon model performance. The initial tests were simple examples designed to investigate the behaviour of a single specific parameter. Subsequent tests were more complex and assessed the combinations of various parameter selections. Once the model was shown to accurately simulate the movement of waters in a coastal and estuarine environment, wave forces were incorporated. The aim of the second component of the study was to modify the hydrodynamic model to predict the net current and water levels attributable to the influences of waves. Tests examined the effects of the application of wave induced forces in a range of applications, including the simple case of a uniform beach, comparisons to a physical model, and an example from a real coastline. The final outcome of this study is the development of a modelling tool that can accurately represent the forces of tides, winds and waves upon water movement in a shallow coastal and/or estuarine region. Furthermore, the qualitative and quantitative assessments of parameters that affect the performance of the model provide greater confidence in model results and better understanding of the applicability and limits of the modelling technique. Principal outcomes of the study are: - an improved understanding of the parameters which influence the behaviour of hydrodynamic models; - a better understanding of the applicability and limits of the modelling technique; and - an enhanced software system based on an existing modelling software system which is applicable to studies that require simulation of the combined forces of tides, winds and waves.