A scheme based on the Boundary Element Method (BEM) for solving the problem of steady flow of an incompressible viscous fluid is presented in this thesis. The problem is governed by both Navier-Stokes (N-S) equations and the continuity equation. The fundamental solution of the two-dimensional N-S is derived, and the partial differential equations are converted to an integral equation;The computer code is flexible enough to handle a variety of boundary and domain elements with different degrees of interpolation polynomial. Boundary and domain integrals over corresponding elements are evaluated analytically. The Newton Raphson iteration scheme accompanied by a relaxation factor is used to solve the nonlinear equations. The code includes a post processor that calculates the velocity components at any point inside the domain;The scheme has been applied to three test problems. The first concerns Couette flow, which has been used as a test case for testing the rate of convergence and accuracy. The second and the third concern the driven cavity and the flow in a stepped channel, respectively;In the integral equation formulation, the primary unknowns are tractions on the domain boundary and velocities in the interior. Because the shear stress, drag, and lift can be simply computed from the values of tractions along the boundary, such a formulation is markedly superior to either the finite-difference or the finite-element formulation. In customary pressure-velocity or streamfunction-vorticity formulations, employed in the finite-difference or finite-element methods, calculation of stress, drag, and lift involves extensive postprocessing.