New flood records are being set across the world as precipitation patterns change due to a warming climate. Despite the presence of longstanding water management infrastructure like levees and reservoirs, this rise in flooding has been met with property damage, loss of life, and hundreds of billions in economic impact, suggesting the need for new solutions. In this work, the authors suggest the active management of distributed networks of ponds, wetlands and retention basins that already exist across watersheds for the mitigation of flood damages. As an example of this approach, we investigate optimal control of the gated outlets of 130 such locations within a small watershed using linear programming, genetic algorithms, and particle swarm optimization, with the objective of reducing downstream flow and maximizing basin storage. When compared with passive operation (i.e., no gated outlets) and a uniformly applied active management scheme designed to store water during heavy rainfall, the optimal control techniques (1) reduce the magnitudes of peak flow events by up to 10%, (2) reduce the duration of flood crests for up to several days, and (3) preserve additional storage across the watershed for future rainfall events when compared with active management. Combined, these findings provide both a better understanding of dynamically controlled distributed storage as a flood fighting technique and a springboard for future work aimed at its use for reducing flood impacts.