The role of linear control theory as an aid to the integral control of hydrologic systems is investigated for the case of a combined lake and aquifer storage system that supplies either a deterministic or stochastic water demand. Only lumped time-invariant systems are considered but both deterministic and stochastic inflows to storage are allowed. The computational example allows for recharge of lake water into the aquifer as well as for the subsequent diversion of pumped groundwater back to the lake. Stability criteria are presented for the closed-loop features of the overall control system. Under a quadratic loss criterion, a calculus of variations problem, subject to constraints imposed by the system equations can be solved for the optimal release policy from the lake and aquifer and optimal feedback policy from aquifer to lake.