With the rapid increase in population and the industrial revolution, the demand for clean energy and water has substantially increased, underscoring their importance for sustainable economic development. Although energy and water infrastructures are often viewed as separate and uncoupled due to distinct processes in power generation and water production, they are fundamentally interlinked within their respective domains. This necessitates a strong coupling to optimally manage power and water resources simultaneously. To address this, a joint optimization algorithm has been developed to manage the supply-side resources of the Energy–Water–Food Nexus (EWFN), including the power, water, food, cogeneration, and storage networks. A mathematical model is first developed to dispatch clear power, potable water, and storage resources, considering constraints related to supply, demand, production, flow, and ramping. Additionally, the integration of a water storage facility alleviates binding constraints, enabling flat production to reduce costs and CO2 emissions. The proposed methodology also allows for the real-time quantification of production costs, energy mix, reserve and curtailed capacities, and energy imbalances. This methodological extension to EWFN includes flexible resources within the grid’s portfolio to promote cleaner production, ensuring that the required amount of water is consumed across all sectors. Finally, the proposed algorithm is tested on freely available datasets, demonstrating that the co-dispatch of energy and water resources in the presence of constraints leads to optimal generation and distribution of power and water without heavily relying on a single-product plant.