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This paper deals with optimal joint user power control and relay distributed beamforming for two-way relay networks, where two end-users exchange information through multiple relays, each of which is assumed to have its own power constraint. The problem includes the design of the distributed beamformer at the relays and the power control scheme for the two end-users to optimize the network performance. Considering the overall two-way network performance, we maximize the lower signal-to-noise ratio (SNR) of the two communication links. For single-relay networks, this maximization problem is solved analytically. For multi-relay networks, we propose an iterative numerical algorithm to find the optimal solution. While the complexity of the optimal algorithm is too high for large networks, two sub-optimal algorithms with low complexity are also proposed, which are numerically shown to perform close to the optimal technique. It is also shown via simulation that for two-way networks with both single relay and multiple relays, proper user power control and relay distributed beamforming can significantly improve the network performance, especially when the power constraints of the two end-users in the networks are unbalanced. Our approach also improves the power efficiency of the network largely.