While water challenges remain on the forefront of California policy, it is important to reflect on the successes and sacrifices made by individuals, groups, and communities throughout the state. Recent advances have led to more efficient applied water use, increased crop yields, and enhanced water quality. This panel will discuss the "Portfolio Management Approach" and other success stories in our continuing struggle to sustainably manage our water resources. Specifically, California water planners, facing a choice between water supply options, customarily use the average unit cost of each option as a criterion. This approach is misleading when comparing options with different reliability characteristics. The Portfolio Management Approach has been adapted from the financial portfolio theory and allows planners to account for uncertainty in yield or water quality by calculating "constant-reliability-benefit unit costs."