ABSTRACT Coupled human and nature systems exhibit dynamic water demands due to diverse consumer socio-economic characteristics, resulting in inherent complexities. Modeling such systems effectively entails adopting an agent-based methodology. To enhance comprehension of water resource management in the Zarrineh-Roud Basin, northwest of Iran, a comprehensive hydrological-behavioral model has been utilized. This model consists of two primary components: An agent-based model (ABM) for simulating farmers’ decision-making processes and a water evaluation and planning (WEAP) model for simulating catchment area, cultivated area, and agricultural water consumption. Validation outcomes of the simulation model demonstrate precise estimation, particularly in the runoff estimation of the Nezam Abad hydrometric station, with statistically favorable correlation coefficient (R2) and Nash–Sutcliffe index (NS) values of 0.78 and 0.75, respectively. Analysis of different management scenarios indicates that with ample government funds, simultaneous implementation of ‘Education and increasing environmental awareness’ and ‘Alternative employment’ policies can significantly improve water resources conditions and income. In scenarios with limited financial resources, a combined implementation of ‘Water pricing,’ ‘Alternative employment,’ and ‘Education and raising environmental awareness’ emerges as the most effective strategy for managing water resources, albeit with a slight reduction in farmers’ income.