Economic-Engineering Optimization for California Water Management

An economic-engineering optimization model of Californiaʹs major water supply system is presented. The modelʹs development, calibration, limitations, and results are reviewed. The major methodological conclusions are that large-scale water resources optimization models driven by economic objective functions are both possible and practical; deterministic models are useful despite their limitations; and data management, reconciliation, and documentation are important benefits of large-scale system modeling. Specific results for California indicate a great potential for water markets and conjunctive use to improve economic performance and significant economic value for expanding some conveyance facilities. Overall, economicengineering optimization (even if deterministic) can suggest a variety of promising approaches for managing large systems. These approaches can then be refined and tested using more detailed simulation models. The process of developing largescale models also motivates the systematic and integrated treatment of surface water, groundwater, facility, and water demand data, and identification of particularly important data problems, something of long-term value for all types of water resources analysis.