In this paper, a three-dimensional computational fluid dynamics model is developed to predict the thermal and electrical performance of a water-cooled concentrated photovoltaic (CPV) system. Based on the good agreement between the numerical results and experimental data from literature, an attempt was made to improve this system performance. Indeed, as the developed model is able to predict the thermal behavior of the different system components, many hot spots were detected in the cell module. In order to avoid this disadvantage while promoting solar cell cooling, the number of water cooling pipes of the CPV module was first increased and then a rectangular channel was employed. Numerical simulation results indicate the potential of the different modified systems for reducing these hot spots and the CPV module temperature, thus providing increased electrical and thermal efficiencies. The optimum design, which presents a solar cell temperature of 315.15K and respectively a thermal and combined (thermal plus electrical) efficiency of 74.2% and 83.5%, is also evaluated.