The purpose of the study was to analyze the impacts of historical and future LULC change on hydrological components and optimal reservoir operations. The historical and future LULC scenarios were developed using the ERDAS Imagine model and Land Change Modeler respectively. In the watershed, the development of agricultural land and the reduction of forest cover were the major contributors to the increase in surface runoff and decline in groundwater flow. To model and optimize the operation of the Nashe hydropower reservoir, the SWAT model and the HEC-ResPRM optimization model were used.<eng>