If you are producing from different layers, run a PLT to detect from where the water is coming from and then perform a water shut off (chemical or mechanical, with a plug). Obviously, your decision will depend on which is the level to exclude and the completion of your well: if it is the lower, you have all the options, if it is above and you have other layers below producing from the same string you cannot put a plug but only have the chemical option. If you have a single selective tubing, simply close the SSD of the level you want to exclude.