Abstract

This study aims at developing a general systems analysis approach, other than straight simulation methods, for handling the complex problem of optimal conjunctive use of groundwater and surface water resources. A two‐dimensional asymmetrical grid network model is chosen to represent the aquifer system. A water resource management problem is considered for a hypothetical region that is composed of several adjoining subregions over a common aquifer basin. It is suggested that the regional water authority regulate optimally the intersubregional aquifer boundary conditions and impose a pumping tax on the local water agencies of the subregions. The pumping tax will provide the revenue for the regional authority to recharge the aquifer basin. The solution is implemented by a completely decentralized decision‐making structure of a two‐level hierarchy.

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