In the past few years, numerous state and national initiatives have started to focus on produced water as an alternative source for agricultural, industrial, or other purposes. The majority of research in this field concentrates on optimization of produced water treatment and related technologies. However, to fully understand the system, besides the cost-effective analysis, we would need to study the short- and long-term social impacts of such phenomenon on the individuals, and the society. In this proposal, we try to create an integrated System Dynamics simulation that reflects the socio-economical mechanisms in Lea and Eddy Counties in New Mexico. This simulation will be added to the hybrid model being created in parallel to this research.