The paper presents a worldwide survey of heavy oil reservoirs and their production methods. The survey shows that one of the most important problems in heavy oil recovery is the presence of bottom water. Since the mobility of water drastically exceeds that of heavy oil, water breakthrough to oil wells occur very early causing dramatic loss of the wells' productivity due to rapid increase of the water cut. The study captures some the difference between heavy and light oil production in terms of mobility ratio effect, recovery dynamics prior to and after water breakthrough, and water cut control with production rate. The results also show that the controlling water breakthrough to wells in heavy oil is several-fold more important (in terms of well productivity and recovery rate) than that for conventional oil wells. Most of heavy oils with bottom water cannot be economically recovered using "cold" (non-thermal) method and conventional (single completed) wells. In these wells, operational range of production rates with variable water cut is very small comparing to light oils. Thus, heavy-oil wells would promptly (within days) switch from water free production to "all water" production. The paper also summarizes a feasibility study into potential application of downhole water sink (DWS) technology in shallow sand containing very significant deposit of heavy oil. Downhole water sink is a new technique for minimizing water cut in wells producing hydrocarbons from reservoirs with bottom water and strong tendencies to water coning. DWS technology controls water coning by employing a hydrodynamic mechanism of water drainage in-situ below the well's completion. This localized drainage is generated by a second completion - downhole water sink - installed at, above, or beneath the oil or gas-water contact. For the purpose of this study a DWS well has been modeled and compared with a conventional well using a commercial reservoir simulator. Results show that DWS technology has great potential to improve recovery in the oil sand with bottom water. All simulated predictions of DWS performance indicate a significant improvement of oil production rates and a several-fold increase of recovery factor. Also explained is the physical mechanism of the improvement that is not specific to the reservoir studied but applies to all heavy oil deposits with bottom water problem.