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Water management and preventing water shortage require accurate planning with attention to the importance of urban water. The problems ahead include the increase in demand and reduction in water supply resources due to factors that cause uncertainties and the high cost of water supply infrastructures. Most studies in urban water management consider only a single criterion. However, in this research, two objective functions, namely cost minimization and per capita water consumption maximization, were used simultaneously. A portfolio approach based on the balance of water supply and demand was developed taking uncertainty into account. Then, the problem was solved using a hybrid robust–stochastic optimization approach. The results showed the selected supply augmentation and demand management options in each stage under dry, normal, and wet year scenarios.

Planning for urban water supply–demand portfolio using a hybrid robust stochastic optimization approach