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A three-dimensional optimization problem for multipurpose reservoirs, based on stochastic dynamic programming, is presented. In the optimization algorithm, the elastic correlation theory of Markov single chain was used to describe the streamflow, the service discharge was taken as the decision variable, the objective function was founded by maximizing the service discharge in which flood control, hydroelectric power and water demand have to be satisfied. Considering effective rainfall, the dynamic programming mathematical model was established and the perfect large computation program was designed, the three-dimensional optimized regulation diagrams were outputted and used directly for multipurpose reservoir regulation. The method can take full advantage of the description of streamflow variability, and temporal and spatial correlations captured within the diagrams. The model can provide more efficient operating decisions than the general model. Muyu Reservoir seated at Shandong province in China was taken as the case study.