Recently, the Kessem–Tendaho project is completed to bring about socioeconomic development and growth in the Awash River Basin, Ethiopia. To support reservoir Koka, two new reservoirs where built together with extensive infrastructure for new irrigation projects. For best possible socioeconomic benefits under conflicting management goals, like energy production at three hydropower stations and basin wide water supply at various sites, an integrated reservoir system management is required. To satisfy the multi-purpose nature of the reservoir system, multi-objective parameterization-simulation-optimization model is applied. Different Pareto-optimal trade-off solutions between water supply and hydro-power generation are provided for two scenarios (i) recent conditions and (ii) future planned increases for Tendaho and Upper Awash Irrigation projects. Reservoir performance is further assessed under (i) rule curves with a high degree of freedom – this allows for best performance, but May result in rules curves to variable for real word operation and (ii) smooth rule curves, obtained by artificial neuronal networks. The results show no performance penalty for smooth rule curves under future conditions but a notable penalty under recent conditions.