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Abstract
The purpose of this paper is to determine the optimal allocation of reservoir water among consumptive and non-consumptive uses. A non-linear mathematical programming model is developed to optimally allocate Lake Tenkiller water among competing uses that maximize the net social benefit. A mass balance is used to determine the level and volume of water in the lake. This paper examines the effect of water management on lake resources when recreational values are and are not included as control variables in the optimization process. Results show that maintaining the lake level to the ‘normal lake level’ of 632 feet during the summer months generates more recreational benefit rather than reducing the lake level by releasing water for hydro power generation.