This is a method to determine the boundary line of reservoir flooding area which will be purchased. Until now, flood water level was used as the boundary line. By lowering this line from flood water level, purchasing cost of reservoir flooding area can be cut down. Sometimes, temporary flooding of arable land outside the boundary occurs. During the life of reservoir, flood damage to crop product on of this land must be indemified with net berefit from arable land between the bovndary line and normal water level. Following is the basic formula to determine the line. (Estimated flood damage to crop production of land outside the boundary line ≤ Estimated net beneift from land between the boundary line and normal water level.) Minimum difference between both sides is needed to minimize the purchasing area. Flood damage and net benefit are estimated by hydrologic estimation with rainfall data and crop production estimation.