This study proposes an improved integrated water resource management (IWRM), in which water conservation was analyzed for the entire water use process. A multi-objective optimization method was appliedto optimize the IWRM, which investigated the reduction of freshwater consumption and the total watersupply cost. Customer’s preference for saving water and an end use analysis (EUA) was applied in thewater conservation analysis. Taking Tianjin as the study area, a reduction in customer’s economic pres-sure (EP) was utilized to evaluate the degree of the customer’s preference for saving water. The resultsrevealed that agriculture had a greater preference for saving water than other sectors, where as the pub-lic had the weakest motivation for saving water. Improving the transportation method could contribute62.1% of the total water savings in the agriculture sector. The optimization of the IWRM demonstratedthat the local freshwater savings would be 21.5%, and the total cost for water supplies would decrease by13%. However, a government subsidy of 87.5 million Yuan would be needed. Additionally, by analyzingthe change in the amount of water savings affected by water price, the appropriate water price increaserange was suggested to be 1.5–1.7 times the original price.