A major objective of the optimization of water resources allocation is to ensure the supply an adequate amount of water to users at the right time and maximize the utilization of water resources. However, in case of insufficient water supply, water shortage is likely to occur intensively for specific water users or in specific periods, referred to as a “concentrated water shortage”. The risk of a concentrated water shortage should be shared across a wider range of users and periods, so that it would have a less severe impact on each calculation unit in each period, which we refer to as the “wide-mild water shortage”. In this study, the nonlinear weight of the water supply objective function can be converted into a piecewise linear weight based on the law of diminishing marginal utility, making it possible to reduce or even eliminate the concentrated water shortage and thus making the allocation of water resources more reasonable. The case study in the Nen River basin in northeast China shows that the improved method results in a significant increase in water shortage units but a significant reduction in water shortage range. As a consequence, water shortage is more uniformly distributed from April to June, which contributes to solving the concentrated water shortage problem in May. However, it should be noted that to what extent the wide-mild water shortage can be realized depends not only on the marginal utility of water demand, but also on the available water supply and the regulative capacity of water supply projects. In spite of this, the improved method enables water to be supplied more suitably for users at the appropriate time, which contributes to improving the utilization of water resources and helping decision-makers better address the problem of concentrated water shortage.

In order to mitigate environmental and ecological impacts resulting from groundwater overexploitation, we developed a multiple-iterated dual control model consisting of four modules for groundwater exploitation and water level. First, a water resources allocation model integrating calculation module of groundwater allowable withdrawal was built to predict future groundwater recharge and discharge. Then, the results were input into groundwater numerical model to simulate water levels. Groundwater exploitation was continuously optimized using the critical groundwater level as the feedback, and a groundwater multiple-iterated technique was applied to the feedback process. The proposed model was successfully applied to a typical region in Shenyang in northeast China. Results showed the groundwater numerical model was verified in simulating water levels, with a mean absolute error of 0.44 m, an average relative error of 1.33%, and a root-mean-square error of 0.46 m. The groundwater exploitation reduced from 290.33 million m³ to 116.76 million m³ and the average water level recovered from 34.27 m to 34.72 m in planning year. Finally, we proposed the strategies for water resources management in which the water levels should be controlled within the critical groundwater level. The developed model provides a promising approach for water resources allocation and sustainable groundwater management, especially for those regions with overexploited groundwater.