The outside water is transported into the water-shorted area. It is allocated among many sub-areas that composed the water-shorted area, in order to maximize the total benefit from the input water for the areas. This paper presents a model for spatial water allocation based on the marginal revenue of water utilization, taking the six southern districts of Hebei Province as an example. The outside water is transported into the water-shorted area. It is allocated among many sub-areas that composed the water-shorted area, in order to maximize the total benefit from the input water for the areas. This paper presents a model for spatial water allocation based on the marginal revenue of water utilization, taking the six southern districts of Hebei Province as an example.