Influence radius of a pumping well is a crucial parameter for hydrogeologists and engineers. Knowing the radius of influence for a designed drawdown enables one to calculate the pumping rate required to layout a project foundation that may need lowering of groundwater level to a certain depth due to dewatering operation. In addition, this is important for hydrogeologists to determine ground water contamination flow paths and contributing recharge area for domestic water supply and aquifer management purposes. Empirical formulas that usually neglect vital parameters to determine the influence radius accurately have been traditionally utilized due to lack of adequate methods. In this study, a physically based method, which incorporates aquifer hydraulic gradient for determining the influence radius of a pumping well in steady-state flow condition, was developed. It utilizes Darcy and Dupuit laws to calculate the influence radius, where Darcy’s law and Dupuit equation, in steady-state condition, represent the inflow and the outflow of the pumping well, respectively. In an untraditional manner, this method can be also used to determine aquifer hydraulic conductivity as an alternative to other pumping test methods with high degree of accuracy. The developed method is easy to use; where a simple mathematical calculator may be used to calculate the influence radius and the pumping rate or hydraulic conductivity. By comparing the results from this method with the MODFLOW numerical model outputs with different simulated scenarios, it is realized that this method is much superior and more advantageous than other commonly used empirical methods.