A numerical method for moving boundary problems based upon Level Set and boundary integral formulations is presented. The interface velocity is obtained from the boundary integral solution using a Galerkin technique for post-processing function gradients on the interface. We introduce a new level set technique for propagating free boundary values in time, and couple this to a Narrow Band Level Set Method. Together, they allow us to both update the function values and the location of the interface. The methods are discussed in the context of the well-studied two-dimensional nonlinear potential flow model of breaking waves over a sloping beach. The numerical results show wave breaking and rollup, and the algorithm is verified by means of convergence studies and comparisons with previous techniques.