Water resources management is becoming more complicated as social and econmic factors are involved in addition to engineering techniques. As a result, the application of decision-analysis is getting more important. One of the major subjects in water resources management is the determination of optimal reservoir discharge upon a typhoon warning, when the expected loss between flooding and water shortage is minimal. In this article, the background of decision-alaysis will first be introduced, then, under proper assumptions, it will be applied to derive the optimal reservoir discharge upon a typhoon warning.