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Feicheng Basin is an important energy base in Shandong Province, China. The Ordovician limestone is the main aquifer for water supply in the basin. As a result of the current practice in which individual water users control the exploitation of the karst water, the regional groundwater level has dropped more than 30 m over the last 20 years. The groundwater is overdrawn in approximately 300 km2 because of the poor management from 1981. A numerical model with distributed parameters is developed for the karst aquifer to help properly manage the water resource and sustain its utilization. The responding matrix method is used to couple the prediction model and the management model. The objective of the modeling exercises is to obtain the maximum amount of water while keeping the water level drawdown within an acceptable level. The optimum management scheme is selected among two proposed designs. The recommended measures from this study include (1) improvement of water use efficiency in industries, (2) comprehensive utilization of the water pumped from the mines, and (3) improvement of the irrigation practice. When the domestic water supply and corporates water demand take the top priorities, the numerical modeling provides a useful tool to help with the rational distribution of the karst water resources among different water users. [ABSTRACT FROM AUTHOR]