An Elliptic model for calculating the combined refraction/diffraction of monochromatic linear waves is developed, including a term which allows for the dissipation of wave energy. Conjugate gradient method is employed as a solution technique. Wave height variations are calculated for localized circular and rectangular dissipation areas. It is shown that the numerical results agree very well with analytical solution in the case of circular damping region. The localized dissipation area creates a shadow region of low wave energy and the recovery of wave height by diffraction occurs very slowly with distance behind the damping region.