With the aim of visualizing the real-time simulation calculation of water delivery system (WDS), a structural drawing-oriented (SDO) simulation technique was presented, and applied to Zhangjiuhe Diversion Project, which is a long-distance water delivery system constructed for drawing water from the Zhangjiuhe River to Kunming city. Taking SIMULINK software as simulating platform, the technique established a visual dynamic simulation model for the system. The simulation procedure of the system was simplified, and the efficiency of modeling was also enhanced according to the modularization and reutilization of the simulation program. Furthermore, a selfoptimization model was presented. Based on the digital simulation models, the on line controlled optimization link was added, and the input data can be continually optimized according to the feedback information of simulating output. The system was thus optimized automatically. Built upon MATLAB software, simulation optimization of the Zhangjiuhe Diversion Project was achieved, which provides a new way for the research of optimal operation of WDS.