Drainwater management strategies include source control, reuse, treatment, and evaporation ponds; questions of interest are efficient management, policy instruments, and sustainability. A high level of source control is indicated absent reuse due to the relatively high cost of evaporation ponds; this is accomplished largely through high uniformity/high cost irrigation systems. With reuse, the primary form of source control is reduction in land area devoted to freshwater production; the released land goes to reuse production. Reuse appears as an economically promising solution to the drainage problem. A high level of net returns is achieved while maintaining overall hydrologic balance in the system. Economic efficiency and hydrologic balance may be attained through pricing or market schemes. With pricing, growers are charged for deep percolations flows, while reuse and evaporation pond operators are paid for extractions. With markets, permit supply is generated by extractions from the water table, while permit demand is generated by deep percolation. Competitive equilibrium exists, is efficient, and implies hydrologic balance. The analysis suggests that a high level of agricultural production may be possible for some period of time while still maintaining environmental quality.