This paper presents a novel approach for simulating the localized leakage behavior of segmentally lined tunnels based on a cohesive zone model. The proposed approach not only simulates localized leakage at the lining segment, but also captures the hydromechanically coupled seepage behavior at the segmental joints. It is first verified via a tunnel drainage experiment, which reveals its merits over the existing local hydraulic conductivity method. Subsequently, a parametric study is conducted to investigate the effects of the aperture size, stratum permeability, and spatial distribution of drainage holes on the leakage behavior, stratum seepage field, and leakage-induced mechanical response of the tunnel lining. The proposed approach yields more accurate results than the classical local hydraulic conductivity method. Moreover, it is both computationally efficient and stable. Localized leakage leads to reduced local ground pressure, which further induces outward deformation near the leakage point and slight inward deformation at its diametrically opposite side. A localized stress arch spanning across the leakage point is observed, which manifests as the rotation of the principal stresses in the adjacent area. The seepage field depends on both the number and location of the leakage zones. Pseudostatic seepage zones, in which the seepage rate is significantly lower than that of the adjacent area, appear when multiple seepage zones are considered. Finally, the importance of employing the hydromechanical coupled mechanism at the segment joints is highlighted by cases of shallowly buried tunnels subjected to surface loading and pressure tunnels while considering internal water pressure.