Associated with energy supply and demand issues it has been emphasized on energy use efficiency and economic feasibility in the development and operation of water supply systems. Efficiency of these water systems are closely related to the location and nature of the water resources. The water supply system using the long distant water resource from water user has a structural limitation of high energy loss in the process of supply and pumping. The water supply system using a nearby water resource can reduce the loss of water supply and energy costs, which lead to reduction of operating costs. However, the water resources located in the vicinity of water user have to secure many sources in the regions because they have small capacity of water supply generally. In this study the dynamic simulation model using System Dynamics (SD) has been developed to apply to the operational management of the water supply system utilizing multiple water sources. The scope of the modeling is from the intake source to the reservoir, not including water distribution network model after reservoir. Dynamic simulation models can simulate water level of the reservoir and pumping costs according to the basic flow and the pumping operation rules in reservoirs. Simulation factors include change of the reservoir volume and power price according to pumping operation rules in the reservoir. Development model is the virtual prototype model of multiple water sources of water supply systems and can be extended, even if the system is more complex. By applying this model to operation and management in the multiple water supply system, it is capable of pre-simulation, which enable the cost-effective operations management.