AbstractThis paper describes a model and a decision support tool for the regulation of a lake–river system using both goal sets and goal points for the water level over the year. The inflow forecast is updated periodically, which results in a series of dynamic rolling horizon goal programming problems. This involves heavy computation, and yet it can be successfully done with the spreadsheet program. The related decision support tool with a graphical user interface is called Interactive analysis of dynamic water regulation Strategies by Multi‐criteria Optimization (ISMO). The Finnish Environment Institute (FEI) actively uses it in the generation of regulation policy alternatives when considered from the different perspectives of the stakeholders. Copyright © 2001 John Wiley & Sons, Ltd.