The authors wish to express their appreciation to Loucks [1968] for his constructive criticism of their recent paper [Meier and Beightler, 1967]. Loucks' comment correctly interprets the authors' enthusiasm for dynamic programming and its usefulness in water resource analysis. The authors believe that dynamic programming OWRR GRANT B-024-TEX and FWPCA GRANT WP-01186-01. The authors wish to ex-press their appreciation to Robert W. Lawless for his assistance in preparation of this reply.