The Egyptian military has reportedly begun to flood the tunnels under the border with Gaza to flush out Palestinian militants and smugglers.
Officials in Cairo say the move is the latest in a series to combat insurgency on their borders.
According to the BBC, Egypt is creating a buffer zone along the border and has destroyed thousands of homes and evicted thousands of families.
Egyptian authorities say they are building fish farms in the area and have used seawater to flood the tunnels, Al Jazeera reports.
The tunnels have played a vital role in getting food and supplies in Gaza after the Israeli government began blockading it after the election of Hamas in 2007.
But residents of Rafah on the Egyptian-Palestine border say they rely on the tunnels and that the flooding could affect their water supplies.
Subhi Radwan, the mayor of Rafah, told Al Jazeera: "This will damage the aquifer, Rafah's underground water. Which means no drinkable water. It will also deprive the farmers from using the water for irrigation and growing their plants.
"It will cause landslides, and could lead to the collapse of houses along the borders. Foundations here are already weak from all the shelling…"
Hamas in pictures
Hamas in pictures
1/10 December 2014
Hamas top leader in the Gaza Strip Ismail Haniya (L), spokesman for the Ezzedine Al-Qassam Brigades, Abu Obaida and Mussa Abu Marzuq (R) greet supporters during a parade marking the 27th anniversary of the Islamist movements creation in Gaza City
2/10 December 2014
Hamas gunmen display their military skills during a rally to commemorate the 27th anniversary of the militant group
3/10 December 2014
Masked members parade in a rally to commemorate the 27th anniversary of the Hamas militant group
4/10 December 2014
Palestinian militants from the Ezzedine al-Qassam brigade, the armed wing of Hamas, carry mock-rockets as they march during a rally to commemorate the 27th anniversary of the Islamist movements creation, at the Nuseirat refugee camp in the Central Gaza
5/10 November 2014
Palestinian young members of the Hamas' Popular Army parade during a graduation ceremony in Jabalia, in the northern Gaza Strip
6/10 November 2014
Members of Hamas security forces march during their graduation ceremony at the fisherman's port in Gaza City
7/10 August 2014
Abu Abida (3L), spokesman for the armed wing of the Hamas speaks during a Hamas militants parade in Shejaiya
8/10 August 2014
A Palestinian man kisses a Hamas militant sniper during a parade by Hamas militants in Shejaiya
9/10 August 2014
Palestinian militants from the Ezzedine al-Qassam Brigades (L), Hamas' armed wing, attend a rally in Gaza City, following a deal hailed by Israel and the Islamist movement as 'victory' in the 50-day war
10/10 August 2014
Palestinian mourners gather during the funeral of three senior Hamas commanders in the southern Gaza Strip town of Rafah. Israeli warplanes killed three top Hamas commanders in southern Gaza inflicting a heavy blow on the movement's armed wing after failing to kill its top military chief
The Egyptian blockade of Gaza is in part an attempt to cut off supplies to an Isis affiliated terrorist group, Sinai Province.
Egypt has accused Hamas of partnering with the group in the region and of using the tunnels to smuggle weapons across the border.
Hamas has denied any allegations and Isis released a video in July saying they planned to overthrow the group because it was not hardline enough.Reuse content