Accurate classification of water area is an preliminary step to accurately analyze the flooded area and damages caused by flood. This step is especially useful for monitoring the region where annually repeating flood is a problem. The accurate estimation of flooded area can ultimately be utilized as a primary source of information for the policy decision. Although SAR (Synthetic Aperture Radar) imagery with its own energy source is sensitive to the water area, its shadow effect similar to the reflectance signature of the water area should be carefully checked before accurate classification. Especially when we want to identify small flood area with mountainous environment, the step for removing shadow effect turns out to be essential in order to accurately classify the water area from the SAR imagery. In this paper, the flood area was classified and monitored using multi-temporal RADARSAT SAR images of Ok-Chun and Bo-Eun located in Chung-Book Province taken in 12th (during the flood) and 19th (after the flood) of August, 1998. We applied several steps of geometric and radiometric calculations to the SAR imagery. First we reduced the speckle noise of two SAR images and then calculated the radar backscattering coefficient $(sigma^0)$. After that we performed the ortho-rectification via satellite orbit modeling developed in this study using the ephemeris information of the satellite images and ground control points. We also corrected radiometric distortion caused by the terrain relief. Finally, the water area was identified from two images and the flood area is calculated accordingly. The identified flood area is analyzed by overlapping with the existing land use map.