A micro tunnelling machine has a tunnelling head with a boring bit which is forced in a horizontal direction by a hydraulic thruster. The direction of the head is laser guided. The beam strikes a target in the head and a camera relays an image of the target to an operator located at the tunnel entrance. The operator adjusts the direction by admitting water and draining water from a pair of rams inside the head which move the boring bit up and down or left and right. Water is introduced into the boring bit through the drive shaft of the boring bit. The water forms a slurry which is extracted by a vacuum pipe which enters the slurry as droplets and particles and conducts them away from the tunnelling head.