ABSTRACT Dam operators decide on dam releases given downstream demands and other factors. Downstream tributaries complicate the problem due to significant uncertainties in their flows. Demands can also be highly uncertain. Incorporating probabilistic ensemble forecasts into the decision-making process can mitigate these uncertainties. We investigate how ensemble flow and demand forecasts can inform Hume Dam releases, in the Murray-Darling Basin, for delivery to Lake Mulwala, about four days downstream. We develop and simulate three forecast-based decision rules governing the releases. The first and second rules are based on the expectations and medians respectively of ensemble forecasts of water excess and shortage, forced by ensemble tributary inflow and demand forecasts. The third rule is based on the risks of an excess or shortage per the ensemble forecasts of water excess and shortage. We analyse the results to answer the following key operational questions: (1) Which decision rule is best for managing Hume Dam releases for water supply and under what conditions? (2) How far ahead of flow and demand forecasts should Hume Dam operators adopt? (3) How does limiting the day-to-day change in Hume Dam releases influence the value of forecasts? (4) What is the value of improved demand forecasts?
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