ABSTRACTIn this paper, a procedure for analyzing a water resource system with special emphasis on evaluation of acceptable economic risk due to occasional failures to deliver water is proposed. The basic methodology includes the development of a simple mathematical model which describes the physical hydrologic and economic characteristics of a single reservoir irrigation and city water supply system and an evaluation of economic benefits of the system with full and partial deliveries of water. The system is simulated for various combinations of decision variables (system magnitudes) and an optimum design is obtained by response surface technology. Emphasis is placed on the basic model and methodology although, in order to introduce some realism, the procedure is applied to data based on the existing reservoir system on the South Concho River in West Central Texas.
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