The paper presents an analysis to account for the coupling between the flow of gas in a water drive reservoir and the flow in the wellbore. The study considers two cases. The first is one in which the underlying water encroaches into the wellbore but does not flow; the second is when both gas and water are produced. The analysis yields the critical gas flow rate necessary for equilibrium in the first case, and predicts the water cut in the second. Agreement with field data is reasonable.