Abstract: Water resource optimization dispatch is very complex. The difference in space and time between water supply source and needs of economic departments for water, the translation relation between surface water and ground water and the compensate modulation between surface reservoir and ground reservoir should be considered. In principle of dispatch, the water supply’s allocation in different regions, departments, ways and corporations is confirmed, so as to make water resource benefit most. This article establishes the main restriction conditions, object function and principle of water allocation through detailed representation of the temporal and spatial relation of the Longkou water resource system. Based on these, subsystems of water resource optimization dispatch are established and experimental application studies have been done.