Economic-engineering analysis of Californian water management.

This paper summarizes the development of an economic-engineering model for California's water supply system (USA). The model consists of a network flow optimization model with gains and losses (HEC-PRM), driven by estimates of the economic values of agricultural and urban water uses throughout California's inter-tied system. Environmental uses of water are represented as flow constraints on appropriate flow segments. Preliminary results of the model show economically promising opportunities for cooperative system operations, conjunctive use, capacity expansion, and water transfers. More detailed investigations are needed to refine and test particular solutions suggested by the optimization results.