This paper presents the house-hold centered water resource approach, jointly proposed by Federal Ministries of water resource and Power. Moreover, the constantly increase demand to achieve an optimum operating policy in water resource and power has forced, Engineers and Planners of both ministries, to contemplate and proposed even more comprehensively, complex and ambitions plans for water supply, power and flood mitigation. Obviously, this paper provides a mathematical optimization modeling which can be used in determining the optimal policy of constructing a Dam for multi-purpose water resource system using Deterministic method of Dynamic Programming in the System Analysis.
