Water resources sustainability is a worldwide concern because of climate variability, growing population, and excessive groundwater exploitation in order to meet freshwater demand. Addressing these conflicting challenges sometimes can be aided by using both simulation and mathematical optimization tools. This study combines a groundwater-flow simulation model and two optimization models to develop optimal reconnaissance-level water management strategies. For a given set of hydrologic and management constraints, both of the optimization models are applied to part of the Mahanadi River basin groundwater system, which is an important source of water supply in Odisha State, India. The first optimization model employs a calibrated groundwater simulation model (MODFLOW-2005, the U.S. Geological Survey modular ground-water model) within the Simulation-Optimization MOdeling System (SOMOS) module number 1 (SOMO1) to estimate maximum permissible groundwater extraction, subject to suitable constraints that protect the aquifer from seawater intrusion. The second optimization model uses linear programming optimization to: (a) optimize conjunctive allocation of surface water and groundwater and (b) to determine a cropping pattern that maximizes net annual returns from crop yields, without causing seawater intrusion. Together, the optimization models consider the weather seasons, and the suitability and variability of existing cultivable land, crops, and the hydrogeologic system better than the models that do not employ the distributed maximum groundwater pumping rates that will not induce seawater intrusion. The optimization outcomes suggest that minimizing agricultural rice cultivation (especially during the non-monsoon season) and increasing crop diversification would improve farmers’ livelihoods and aid sustainable use of water resources.