As water issues associated with hydraulic fracturing have received much attention, several optimization approaches have been developed for effective water management. However, most of them have not considered pumping schedules for hydraulic fracturing, which determine the productivity of a shale well as well as the total amount of freshwater required. Motivated by this consideration, a novel model-based control framework is proposed for hydraulic fracturing to maximize the net profit from shale gas development which simultaneously minimizes the total cost associated with water management. The framework is as follows; initially a reduced-order model and a Kalman filter are developed based on the simulation data generated from a high-fidelity hydraulic fracturing model to correlate the pumping schedule and the final fracture geometry. Then, a numerical reservoir simulator and mixed-integer nonlinear programming model are used to generate two maps describing the revenue from selling shale gas produced and cost from managing wastewater recovered, respectively. Finally, by applying a data-based dynamic inputoutput model to connect the two maps, a model predictive control system is formulated. The proposed control framework enables 62% of the generated wastewater to be reused through the application of thermal membrane distillation technology in treatment process and results in a 11% reduction in overall freshwater consumption, while maintaining the productivity of shale wells at its theoretical maximum. iii ACKNOWLEDGEMENTS Texas A&M University is a wonderful place and the past two years have been the most fulfilling of my life. I would like to say a heartfelt thank you to my advisor, Dr. Joseph Sang-Il Kwon, for giving me the opportunity to carry out this project as well as his great support and belief through the two years. He always gave me the right direction whenever I felt lost and I have learnt a lot from working with him. Thank you for your guidance. Working with Prashanth Siddhamshetty, Rajib Mukherjee and Yuchan Ahn during these two years in Texas A&M Energy Institute has been an exceptionally educational experience. Their method of study, spirit of investigation and work ethic are the ones I pursue. I`d also like to thank my committee members, Dr. Mahmoud M. El-Halwagi and Dr. Kan Wu, for their necessary help and advice. Thanks also go to my colleagues and the department faculty and staff for making my time at Texas A&M University a great experience. I want to say a special thank you to Xiaobo He, Yiling Luo, Pengfei Cheng and Jianping Li for being in my life and encouraging me all the time. I could not have done it without them. Lastly, thanks to my mother and father for their love, support and patience. I am thankful that they have always been supportive of all my decisions and encourage me to try my best. Thank you for believing me.