Accurate long–term water resource supply simulation and demand estimation are crucial for effective water resource allocation. This study proposes advanced artificial intelligence (AI)–based models for both long–term water resource supply simulation and demand estimation, specifically focusing on the ShihMen Reservoir in Taiwan. A Long Short–Term Memory (LSTM) network model was developed to simulate daily reservoir inflow. The climate factors from the Taiwan Central Weather Bureau’s one–tiered atmosphere–ocean coupled climate forecast system (TCWB1T1) were downscaled using the K–Nearest Neighbors (KNN) method and integrated with the reservoir inflow model to forecast inflow six months ahead. Additionally, Multilayer Perceptron (MLP) and Gated Recurrent Unit (GRU) were employed to estimate agricultural and public water demand, integrating both hydrological and socio–economic factors. The models were trained and validated using historical data, with the LSTM model demonstrating a strong ability to capture seasonal variations in inflow patterns and the MLP and GRU models effectively estimating water demand. The results highlight the models’ high accuracy and robustness, offering valuable insights into regional water resource allocation. This research provides a framework for integrating AI–driven models with Decision Support Systems (DSSs) to enhance water resource management, especially in regions vulnerable to climatic variability.