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Demand simulation is relevant to identify main problems of current excess water use, and to evaluate alternative improvements both at the farm and the distribution scales. Demand simulation is performed first at the unit/distributor level, and is then aggregated to the branch and the sector. At the unit level, the demand is estimated from the irrigation schedules at farm and the performance of the water application at field. Aggregation to the branch canal system and to the Sector is performed using simplified management delivery rules and following the process of water allocation currently applied. These procedures are described as well as those for generation of required data. Results for an application to two Division of the Huinong Irrigation District, Ningxia, in the upper Yellow River Basin, are presented and discussed including the comparison of the simulated demand with average allocations. Several scenarios for improvement are developed and a multi-criteria analysis is applied to their evaluation. The application to the Divisions 2 and 4 of the Huinong Irrigation District is shown. Results from several scenarios and their progressive implementation in time are analyzed showing positive impacts in farmers incomes and, mainly, on the environmental consequences of water savings.