A novel methodology for designing a wind-electric water pumping system is developed in this study. The system employs a self-excited induction generator (SEIG) driven by a wind turbine (WT) and an induction motor (IM) feeding a water pump. Selection of values and proper configuration of excitation capacitors for this system is the key factor which is performed by an optimisation algorithm. The methodology commences with the design of hydraulic system and choice of proper pump. Then, the gearbox ratio of the chosen WT is determined to coordinate the characteristic of the WT with that of the pump. The aim is operation of the system near the maximum power output of the WT in different wind speeds. Thereafter, the electrical system is designed by choosing the suitably rated powers for the SEIG and IM. The optimal capacitor values in various configurations, viz. the shunt, short shunt, long shunt, T, and Π, are calculated utilising the genetic algorithm and then, the best configuration considering the system operating conditions is introduced. The objective function is defined to regulate the IM operating point at the knee point of its magnetising characteristic under wind speed variations. The system performance is evaluated through simulation and experiment.