Statistical and Simulation Analysis Assists Santa Clara Valley Water District Planning

Published Online:https://doi.org/10.1287/inte.24.6.82

Using Extend simulation software, we analyzed the Santa Clara County, California water supply. We determined that (1) the drought situation (1987–1992) can be expected to occur two or three times per 100 years, and (2) the supply will frequently not meet current annual demand and will fall far short of projected demand by 2020. We evaluated alternative courses of action. Using our analyses, the Santa Clara Valley Water District (1) negotiated a clause that saved $4 million on water contracts during 1992–1993, (2) evaluated using a storage facility in another California county, and (3) started preliminary engineering and environmental studies on a new reservoir.

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