Droughts constrain environmental, economic, and social development around the world. Reservoir hedging rules are commonly used to reduce the risk of severe water shortages, but the effects are closely related to the characteristic of the reservoir water supply system. Previous studies have limited understanding of the key system characteristics that help to determine whether hedging rules are beneficial for drought mitigation. To fill this gap, this study carries out experiments with a hedging rule triggered by drought limited water level (DLWL). We explore the impact of DLWL on system performance i.e., water supply reliability, resilience, and vulnerability, with a range of hypothetical reservoirs, propose the criterion to decide whether the DLWL is applicable, and identify characteristics of reservoirs where DLWL is not applicable via a scenario discovery method. Three types of reservoirs where DLWL is not applicable are identified. Type Ⅰ and type Ⅱ experience structural deficits. Type Ⅰ is characterized by scarce water resources (m < 0.44) and high inflow uncertainty (Cv > 0.60). Type Ⅱ is mainly characterized by the low reservoir regulation capacity (SI < 0.35). In the type III systems, water demand can always be satisfied and is characterized by the abundance of water resources (m > 0.98) and adequate regulation capacity (SI > 1.02). For the rest of the reservoirs where DLWL is applicable, a multi-objective DLWL optimization method is put forward. Qing River Reservoir in Northeast China is taken as a base case to demonstrate the effectiveness of DLWL and study the influence of changing hydrologic and socioeconomic conditions on optimal seasonal DLWLs. Results indicate that to cope with increasing water supply pressure featured by increasing total demand, decreasing streamflow, and higher streamflow uncertainty, DLWL during the high-water demand periods ought to be raised and DLWL during the dry season that guides water supply for several months ought to be lowered. Insights from this work have general merit for instructing reservoir managers to take effective drought mitigation measures.
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