A stream-reservoir model was developed to simulate the operation of the Lakes Marion-Moultrie, South Carolina, reservoir system. The reservoir system is operated under the assumption of a 3-day prior knowledge of inflows. This information is attainable from the ooperational reservoir-inflow forecasting model developed in the Part I report. The model, developed for this part of the study, incorporates an inflow component, a diversion-canal component, and a reservoir system component and is capable of evaluating the performance of the reservoir systemem for a variety of operating rule conditions. All model components were verified using observed reservoir input and output data for a 6-year (1967-72 water years) period. In addition, a long-term 31-year simulation under present rule of operation was performed and the results summarized statistically. The model may be used for simulating other rule curves of operation for planning studies of reservoir system performance. (See also W75-05646) (Woodard-USGS)