 Solution

A point vortex of circulation $\Gamma$ at $z_0$ contributes the complex potential of a two-dimensional potential flow $-i\Gamma \log (z-z_0)/(2\pi )$ with the stated convention. The method of images places a vortex of the opposite circulation at ${\overline{z}}_0$ below the wall, outside the fluid domain. Superposition with the stagnation flow givesFor real $z=x$, the distances $|x-z_0|$ and $|x-{\overline{z}}_0|$ agree. The two vortex contributions to the stream function are $-\Gamma \log |x-z_0|/(2\pi )$ and $+\Gamma \log |x-{\overline{z}}_0|/(2\pi )$, which cancel. The background stream function is also zero there, so $y=0$ remains an impermeable streamline. The image changes the boundary condition without introducing another singularity in the upper fluid region.