Opposite the French First Army (), the Germans had counter-flooded the area between Dixmude and Bixschoote and fortified the drier ground around the waters to stop an attack across or around the floods. Drie Grachten (Three Canals) was the main German defensive fortification in the area, blocking the Noordschoote–Luyghem road at the crossing of the Yperlee Canal north of the Steenbeek. The area was beyond the confluence with the Kortebeek, where the rivers joined to become the St Jansbeek. From Luyghem, a road ran south-east to Verbrandemis and the road from Zudyschoote and Lizenie to Dixmude crossed the Yperlee at Steenstraat. The capture of Luyghem, Merckem and the road would threaten Houthoulst Forest, to the south of Dixmude and north of Langemarck. By 15 August, the French had closed up to Drie Grachten from Bixschoote to the south-east and Noordschoote to the south-west.