Groundwater resources occur in a multi-aquifer system in the alluvial coastal plain near Beihai, China. The aquifers receive recharge from precipitation, canal and reservoir infiltration, and discharge through subterranean drainage into the sea and through artificial pumping. A quasithree-dimensional finite element model has been used to simulate the spatial and temporal distribution of groundwater levels in the aquifers. Various input parameters were considered in the simulation model. A linear optimization model has been developed for groundwater development within the coastal aquifers. The objective function of the model is to maximize the total groundwater pumpage from the confined aquifer. The control of sea water intrusion is examined by the restriction of the water levels at points along the coast and of the pumping rates in coastal management cells. The response matrix used in the optimization model was generated from the simulation model by forecasting drawdown produced by pumping at a unit impulse discharge. Groundwater development can be primarily optimized by the alteration of the pumping rates of the existing wells.