This paper describes the background and the development of a hydrologic network flow model. The model was development to simulate daily water demand and supply for selected stream reaches within a watershed, and used as a tool for evaluating, simulating, and planning a water resources system. The proposed network flow model considers daily runoff from subareas, various water demands, and diversion structures within each subarea. Daily streamflow at a reach is simulated after balancing the water demands from subareas. The lateral inflow from subareas is simulated using a modified tank model. Total water demands consist of the daily demands for agricultural, domestic, industrial, livestock, fishery, and environmental uses within a rural district. The return flow, diversions from sources and storage components such as reservoirs were also incorporated into the mode l . The developed model is a generalized version that may be applied to different combinations of river reaches for a given system. This may help potential users identify areas where water supply does not suffice the demands for different time horizons.