Water delivery management in China’s irrigation districts has traditionally prioritized the main canal system, often overlooking the water-saving potential of the final canals and field irrigation, which offer substantial opportunities to enhance water use efficiency and conserve agricultural water resources. This study summarizes and defines the integrated water management of final canals and field irrigation as terminal water management. An optimization method was developed to improve terminal water management, which includes optimizing irrigation quotas based on water balance and scheduling final canal water delivery to minimize seepage losses. A genetic algorithm was employed to solve the problem. The method was applied to the Hongjin irrigation district in Jiangsu Province, China. In 2020, paddy water management was observed, revealing that the irrigation amount for organic and traditional rice was 1113 mm and 956 mm, respectively. Conventional irrigation and water delivery practices have led to extensive drainage, significant rainwater wastage, and inefficient water use. The optimized irrigation quotas for organic and traditional rice resulted in water savings of 302.5 mm and 325.9 mm, respectively, compared to the 2020 monitored data. An irrigation event in early August during a 75% hydrological frequency year was selected as an example. With conventional scheduling, optimized final canal water delivery scheduling reduced the seepage losses from 6.3% to 4.6%, shortened the irrigation time from 17 h to 14 h, and stabilized canal flow rates. The proposed optimization method is a valuable tool for enhancing terminal water management and supporting better irrigation decisions in irrigation districts.