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Coordinated and efficient operation of water resource systems becomes essential to deal with growing demands and uncertain resources in water‐stressed regions. System analysis models and tools help address the complexities of multireservoir systems when defining operating rules. This paper reviews the state of the art in developing operating rules for multireservoir water resource systems, focusing on efficient system operation. This review focuses on how optimal operating rules can be derived and represented. Advantages and drawbacks of each approach are discussed. Major approaches to derive optimal operating rules include direct optimization of reservoir operation, embedding conditional operating rules in simulation‐optimization frameworks, and inferring rules from optimization results. Suggestions on which approach to use depend on context. Parametrization–simulation–optimization or rule inference using heuristics are promising approaches. Increased forecasting capabilities will further benefit the use of model predictive control algorithms to improve system operation. This article is categorized under:Engineering Water > Water, Health, and SanitationEngineering Water > Methods [ABSTRACT FROM AUTHOR]