In this study, an integrated two-stage optimization model (ITOM) is developed for the planning of municipal solid waste (MSW) management in the City of Regina, Canada. The ITOM improves upon the existing optimization approaches with advantages in uncertainty reflection, dynamic analysis, policy investigation, and risk assessment. It can help analyze various policy scenarios that are associated with different levels of economic penalties when the promised policy targets are violated, and address issues concerning planning for a cost–effective diversion program that targets on the prolongation of the existing landfill. Moreover, violations for capacity and diversion constraints are allowed under a range of significance levels, which reflect the tradeoffs between system-cost and constraint–violation risk. The modeling results are useful for generating a range of decision alternatives under various environmental, socio-economic, and system-reliability conditions. They are valuable for supporting the adjustment (or justification) of the existing waste-management practices, the long-term capacity planning for the city's waste-management system, and the identification of desired policies regarding waste generation and management.