Abstarct: Ghochan-Shirvan plain is the greatest and most important watershed of Atrack river that since 1987 is not allowed to dig more producing boreholes in this plain of Khorasan province. Due to hydrogeological conditions of this plain and the considerable decrease in the water level during last two decades, hydraulic connection has been cutted from Borzel Abad village and it was divided into two Shirvan and Ghochan aquifers. Mathematical models are used as an important tools in management of groundwater resources and appropriate discharge of these storages. In order to optimize the hydraulic parameters and considering the effect of Barzo dam on the recharge water into Shirvan aquifer and also the aquifer behavior in different management subjects, this aquifer was simulated by PMWIN model. After aggregating required information and data, the model developed and first information inputted in the model. the developed model was run for December 2002 (steady state) and hydraulic conductivity and the coefficient conductance of boundaries calibrated. After calibrating the model for steady state conditions, the model was run in unsteady state and the hydraulic parameters such as specific yield, recharge and discharge were determined. In the verification stage using observed data of two water years (i.e. 2004-2005 and 2005-2006) the developed model was run and the result obtained from the model compared with observed data. Then the results was used for aquifer management. Exerting the model for the maintained two water years showed that it can precisely predict the values of water table. After achieving to the validity of developed model, the results obtained from the model were used for the management of the aquifer. According to the obtained results, the annual water budget of Shirvan aquifer for three calibration years shows an increase trend due to development of irrigation systems of the dam and also increase in the annual rainfall. In order to evaluate the effects of irrigation systems of dam in different parts of the aquifer, the study area classified into three zones namely eastern, central and western zones. The model was considered each zone as a separated system and the results of water budgets for the different zones showed that, the annual water budget in eastern and western zones are negative but it is positive for the central zone.