Risk assessment and minimisation of environmental hazards are critical issues to consider in the geotechnical engineering projects. A case of highway pavement seepage induced by groundwater, at a locality along the section of Hua-Qing Highway of Guangdong Province, China, is presented for environmental hazard analysis and effective remediation. The environmental hazard analyses were based on in situ hydrogeologic investigation, rock-soil testing and integrated environmental understanding. The analyses indicate that the highway seepage was caused by elevation of groundwater hydraulic pressure in low permeable strata near the highway pavement, which was controlled by landform, hydrology, weather and road structure. The risk source of groundwater 'flooding' was the groundwater and surface water in the ring-like valley around Fenshui Village. A blind-ditch system for effective remediation of the pavement seepage hazard was proposed and successfully implemented by declining groundwater table near the highway based on the comprehensive assessment of various conditions. This geotechnical accident shows that the role of groundwater is an essential factor to consider in the geotechnical and environmental engineering studies and multidisciplinary effort for risk assessment of environmental hazards is important under current global climate change condition.