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A method for finding optimal operating policies for a multiunit water resource system that extends over two river basins and serves multiple demands is presented. The method was developed and tested for one of several systems that have been proposed for further development of the water resource in the urbanizing Piedmont Triad region of North Carolina. Monthly operating decisions are given by solutions of a piecewise linear programing problem, the objective function for which consists of two parts, immediate economic losses within the month and the expected present value of future losses as a function of end‐of‐month storage levels in the reservoirs. The latter function is estimated by imbedding the linear programing problem in a stochastic dynamic programing problem. An approximate solution technique for the larger problem is described, and computational experience is reported.
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Takeuchi et al. (1974) studied this question.
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