This study presents the establishment of sustainable development and management policies for the Kucuk Menderes River Basin aquifer system in western Turkey. Geological, hydrogeological, and geophysical data are used conjunctively to define various hydrogeological units and their geometry. Distributions of hydraulic-parameter values and recharge are estimated by geostatistical methods and hydrologic simulations, respectively. A finite-difference groundwater flow model is used to represent the unconfined flow in the aquifer system. The model has been calibrated under steady state and transient conditions. The resulting model was used to test seven management scenarios for a planning period of 21 years to determine the so-called safe yield and sustainable yield of the aquifer system and to investigate the potential impacts of four planned surface water reservoirs on groundwater resources in the basin. The results demonstrate that the continuation of the present pumping rates exceeds both the safe yield and the sustainable yield of the aquifer system. Consequently, the growing need for irrigation water should be met by the construction of the planned surface water reservoirs and the implementation of efficient water management policies and plans.