The contradiction between water supply and demand in China is becoming increasingly prominent. A water allocation scheme that satisfies various water users can effectively solve it. In this paper, considering both individual rationality and collective rationality, a bilevel optimal allocation model for river basin water resources is established. Firstly, water users’ satisfaction degree was defined, to characterize their satisfaction with the water resource allocation scheme, and principles of water users’ satisfaction degree were mathematically expressed, to represent water users’ negotiation activities in the initial water rights allocation. Then, based on the initial allocation results, water users’ water intake quantity, water-saving amount, and water-trade amount were optimized by water rights trading. Finally, an algorithm based on the response surface was put forward for solving the proposed bilevel optimal allocation model. The validity and feasibility of the model and algorithm were verified by a case study in the Qingzhang River Basin in China.

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