Mathematical optimisation is used to integrate and economically evaluate wastewater reuse, desalination and other water management options for water supply in Ensenada, Baja California Mexico with future levels of population and water demand. The optimisation model (CALVIN) is used to explore and integrate water management alternatives such as water markets, reuse and seawater desalination, within physical capacity constraints and the region's water availability, minimising the sum of economic costs of water scarcity and operating costs within a region. The modelling approach integrates economic inputs from agricultural and urban water demand models with infrastructure and hydrological information, to identify an economically optimal water allocation between water users in Ensenada. Estimates of agricultural and urban economic water demands for year 2020 were used. The optimisation results indicate that wastewater reclamation and reuse for the city of Ensenada is the most economically promising alternative option to meet future water needs and make water imports less attractive. Seawater desalination and other options are not economically viable alone, but may have some utility if combined with other options for the Ensenada region.