- The Hazbani-Dan water system supplies gravitational water for both irrigation and hydroelectric energy production. An automatic control system for operating the energy plant while satisfying the irrigation needs was developed and applied. This was accomplished through an interdisciplinary research effort comprised of a feasibility study, formulation and analysis of a two level optimization model, development of forecasting models, and information system analysis. The value of such a control system goes beyond its direct economical benefits. It also provides tools for management decisions involving the evaluation of investments, and the determination of operating rules. This paper consolidates the narrow and technical scope of previous reports by presenting the overall research methodology, the relationships among the different parts, and a unique way of conducting applied research in an academic environment.