Korea has assessed its water supply-and-demand system to change, develop, and allocate water resources. This study confirmed the current problems in water supply-and-demand analysis and the need for improvement suggested by previous studies. By considering these problems and the proposed improvement, we developed a water supply-and-demand analysis system that takes the actual water-use system into account and quantifies the resulting water shortage in each administrative district. The spatial-unit analysis was subdivided into standard hydrologic watershed units in the East Sea region of the Han River, where water management was relatively weak, and the distortion was minimized by directly reflecting the basic unit of water demand for each type using the MODSIM model. In addition, the regional sources for water supply, such as water facilities and groundwater use, were directly reflected in the model. As a result, we discovered the possibility of water shortage in administrative district units that was not identified by the existing analysis system. In particular, the water-shortage problem that occurred in Gangneung-si and Sokcho-si was indirectly expressed by our method. Improved specific and realistic water-resource planning can possibly be realized by using the method developed in this study rather than the existing method.