The methodology of operations research is judged in relation to its utility to water resource management in an urbanized arid environment and to the study of worth of data for such management. Conditions for existence of a managerial problem are reviewed as is the multilevel structure of the decision process, including decisions on social goals for Western water use. Worth of data can only be judged in relation to a particular use to meet a social or managerial objective. The role of uncertainty on the decision process is reviewed in the light of past water decisions and present and future problems.