In Japan, shield tunneling method is generally used to drive a tunnel in sand layers around the urban area. In this report, appli- cability of NATM (New Austrian Tunnelling Method), which uses rock bolts and shotcrete as support, to water-bearing sand layers is studied aiming at establishing more economical tunnel driving technique. After the geological exploration, the conditions (i.e. pitch of steel supports, water content, cohesion, and fine content of ground,)necessary to ensure the face stability were investigated by using centrifuge loading tests. Concerning measures to manage ground water, an air permiability test was carried out to investigate the effect of the compressed air to cut-off inflow, and pumping test to study the applicability of dewatering. Furthermore, two dimensional elastic FEM analysis consider- ing progress of the excavation face was perform- ed to analyze stresses in the support system and deformation of the ground, and to investi- gate safety of the support and the ground. From these prior investigations, possibility of the applicability of NATM to the present pro- ject was predicted. Finally, based on these results, a real scale field application test was put into practice to confirm the prediction, and to pursue construction efficiency and phenomena which could not have been predicted Beforehand.