This paper presents a high-accuratcy method for solving 2-D incompressible viscous N-S equations in tensor forms. A domain decomposition method was used to divide the computational domain into several regular blocks with the overlapping grid in order to transfer data between sub-domains and to remove numerical singularity caused by domain decomposition. Using the method and algorithm presented above, the flow passing an ellipse was computed and the formation and evolution of the vortex shedding was successfully simulated.