This practical method integrates petroleum engineering knowledge, reliability and six sigma tools in a reservoir production system model representing all potential cause effect relations and failure modes to identify the origin of water production and its classification as wanted or non-wanted. A general process is proposed to design a custom made solution for either controlling or handling water production. The solution is modeled with systems dynamics and stochastic simulation to calibrate cost, benefits, cycle time and required resources and data acquisition to close the loop during the life cycle of the field. The method has seven macro processes: 1) Data gathering and reliability analysis, 2) Determination of non wanted water production, 3) Analysis of causes related to mechanical problems in the well, 4) Analysis of causes related to well drainage area, 5) Analysis of causes related to the reservoir, 6) Definition of corrective and preventive actions and 7) Cost, cycle time and resources modeling to design a solution with the required actions during the life cycle of the field. Two examples from two fields in Venezuela are used to describe the application of the method. In these examples cycle time including solution design and implementation is 80 days with a total cost ranging between 300 to 600 thousand dollars. We provide a road map for water production analysis, diagnosis and solution design in oil and gas reservoirs that can be adapted custom- made to any field to address water origin identification, classification as wanted or non wanted water and solution design. This method is non-commercial so it can be used by operators as an alternative to others that could be biased to particular technologies. If used appropriately this method could increase hydrocarbon recovery and reduce risks and costs of environmental impact of water. Finally, this method is a framework for standardization of existing work processes and for integrating the work of all disciplines required for managing water production in an integral way.