The Upper Fenhe Reservoir System studied by KOWACO to supply water to Taiyuan City, capital of Shanxi Province in China, is a very complicated one. Many reservoirs will be connected serially and it will be operated as a multi-purpose and multi-criteria system because several objectives and appraisal functions are taken into account regarding system operation. For reservoirs in the system, the critical system operation objectives are to minimize water shortage and reservoir sediment. Furthermore the reservoir system will be jointed with a large-scale pumping system, namely Yellow River Diversion Project. The water development cost in the Yellow River Diversion Project is much higher than that of reservoir system, and around the year 2020 the diversion volume will be twice of the surface water available in the Upper Fenhe Basin. In this study, an optimization technique for connecting the system of reservoirs and pumping station was developed to solve a conjunctive low River Diversion Project. The developed scheme includes a suggestion on the combining methodology of real reservoir system and pumping system using imaginary reservoir concept for the Yellow River Diversion Project, and practical examples to the minimization problem of the Yellow River diversion satisfying other reservoir operation objectives.