In this study, the land and water resources allocation model was developed to determine optimal cropping patterns and water resources allocations at different rainfall probability exceedance levels (PEs) to ensure maximum agricultural return in the Hormat-Golina valley irrigation command area, Ethiopia. To account the uncertainty of rainfall variability, the monthly dependable rainfall was estimated at three levels of reliability (20, 50 and 80% PEs) which are representing wet, normal and dry seasons based on regional experience. The irrigation water demand which was used as an input to the optimization model was estimated at each level of reliability by using CROPWAT model. The net annual returns of optimal cropping patterns were estimated as 181, 179 and 175 million Ethiopia Birr at 20 %, 50 % and 80 % PEs, respectively. The result of the optimal cropping pattern indicates that, the net annual return of the command area was increased to 45.75%, 45.84% and 47.01% than the Government targeted at 20%, 50% and 80% PEs, respectively. The findings reveal that the optimal land and water resources allocation model is very useful to the planners and decision makers to maximize the agricultural return particularly in areas where land and water resources are limited.