Driven by field logistics in an unconventional setting, a well may undergo weeks to months of shut-in after hydraulic-fracture stimulation. In unconventional reservoirs, field experiences indicate that such shut-in episodes may improve well productivity significantly while reducing water production. Multiphase-flow mechanisms were found to explain this behavior. Aided by laboratory relative permeability and capillary pressure data, and their dependency on stress in a shale-gas reservoir, the flow-simulation model was able to reproduce the suspected water-blocking behavior. Results demonstrate that a well-resting period improves early productivity and reduces water production. The results also indicate that minimizing water invasion in the formation is crucial to avoid significant water blockage.