The present invention relates to systems and methods for optimizing water allocation. In particular, the present invention relates to systems and methods for establishing and querying a database of information for projecting and optimizing water distribution within a county, city or state and providing useful output as a result of such queries. The system and method also provide for exchange of water rights and the output of data in a useful form, such as a map, graph, list, summary or chart. The system and method also provide for water planning based on consideration of various parameters.