A water-based drilling fluid and method of using same are presented in this disclosure, which fluid is used in drilling wells through a formation containing a shale that swells in the presence of water. The drilling fluid comprises an aqueous based continuous phase; a weighting material; and a shale hydration inhibition agent (SHIA) selected from the group consisting of propylamine derivatives, hydrogenated poly(propyleneimine) dendrimers (HPPID), and polyamine twin dendrimers (PTD). In some embodiments, the SHIA of this disclosure is not hydrolyzed at a temperature in the range of from about 100° F. to about 500° F. The drilling fluid may further comprise a fluid loss control agent, an encapsulating agent, other additives, and combinations thereof. A method of reducing shale swelling during wellbore drilling is also described. The method comprises circulating in the subterranean well a water-based drilling fluid comprising an aqueous based continuous phase, a weighting material, and a SHIA.