Large dams are managed with operation standard and flood forecasting systems, while small dams do not have management method generally. Shortage of water resources and natural disasters due to drought and flood raised public concerns for management of small dams. Most of small dams are irrigation dams, which need diversified water uses. However, the lack of systematic management of small dams have caused serious water wastage and increased natural disasters. Storage management method and system were developed to solve these problems in small dams. The system was applied to Seongju dam for effective management. The storage management method was established considering hydrology simulation and statistical analysis using the system. This method can bring additional available water, even in the same conditions of the water demand and the supply conditions of watershed. It can improve the flood control capacity and water utilization efficiency by' the flexible operation of storage space.