Water resource allocation not only meets resident's production, living and ecological needs, but also increases resident's euphoria. This paper, based on published papers regarding water resource allocation from water volume, macroscopic economy and sustainable development, classifies water resource as living, ecological, agricultural and industrial water uses in accordance with fairness and balance in water resource allocation, and establishes an effective function of water resource allocation in maximizing residents euphoria. A water resource allocation model was constructed based on supply, demand and water quality, which is verified on a case study on Luoyang city. It concludes that the current water resource allocation can not maximize the residents water use if the total water resource keeps unchanged, which can be raised to 3.96 from 2.97 if living, agricultural, industrial and ecological water uses are adjusted to 262 million, 591 million, 442 million and 203 million cubic meters, respectively, suggesting the model of effectiveness in optimizing water resource allocation.