A new research project focused on environmental problems of Ise bay was initiated at Yokkaichi University. The project consists of the development of two and three dimensional computer programs and investigations of flow fields of the bay. In this paper, numerical methods adopted in the two dimensional program are described in detail. A new numerical scheme based on F.D.M. on general curvilinear coordinate system is proposed. It is shown that the scheme with a "quasi" regular type grid system has many advantages compared with conventional methods. Simulations of flow fields of the Ise bay subject to M2 tidal oscillation were carried out as the first trial of the computer program. Several types of data such as amplification factors of wave height flow fields of residual currents, and exchange rates of sea water at the inlet of the Ise bay were computed by post-processing the simulation results. To evaluate the accuracy of the computer code, comparisons with observed data were made and fairly good agreements were found between them.