The accuracy of the calculation results in seepage analysis is determined largely by the boundary conditions. The construction of underground caverns and reservoir impoundments will inevitably lead to a redistribution of the underground seepage fields and the change in groundwater level. However, commonly used finite-element simulation methods rarely consider the effects of changes in the boundary water level. This study examined the mechanism of the change in groundwater level caused by impoundment. The drainage of underground caverns on the boundary water level of the model on the mountainsides, and the boundary water-level correction method is proposed. By applying simplified engineering examples, the groundwater levels of the boundaries were calculated (impoundment condition). The results show that the distribution of the seepage field before and after the correction is different. Furthermore, the calculation results of the flow rate are exaggerated (drainage condition of the cavern), as the groundwater drawdown at the computation boundary is ignored. The proposed method can correct the water level at the boundary of the model and effectively improve the calculation accuracy of seepage analysis.