Various optimization techniques for automatic calibration of groundwater models have been used effectively over past recent years. The present study is another attempt in the same direction through which a new computer model, developed on the basis of optimization technique, is discussed. Throughout the model, the well-known Finite Element Method (FEM) is utilized to discretize and solve the governing equations of groundwater flow. For the optimization part, Augmented Lagrange Multiplier Method (ALMM) is used to convert the constrained problem to an unconstrained problem, first. Then Davidon-Fletcher-Powell (DFP) optimization technique is utilized to solve the resulted unconstrained problem. The capabilities of the developed model are illustrated by employing an example. The results show fairly good performance of the model, although some limitations still exist.