Currently, the integration of carbon and water values of forest ecosystems into forest management planning models has become increasingly important in sustainable forest management. This study focuses on developing a multiple-use forest management planning model to examine the interactions of timber and water production as well as net carbon sequestration in a forest ecosystem. Each forest value is functionally linked to stand structure and quantified economically. A number of forest management planning strategies varying in the amount of water, carbon, and timber targets and flows as constraints are developed and implemented in a linear programming (LP) environment. The outputs of each strategy are evaluated with a number of performance indicators such as standing timber volume, ending forest inventory, area harvested, and net present value (NPV) of water, timber, and carbon over time. Results showed that the cycling time of forest stands for renewal has important implications for timber, water, and carbon values. The management strategies indicated that net carbon sequestration can be attained at a significant cost in terms of foregone timber harvest and financial returns. The standing timber volumes and ending forest inventories were among the most important factors determining whether the forest constitutes a net carbon sink or source. Finally, the interactions among the forest values were generally found to be complementary, yet sometimes contradictory (i.e., negatively affecting each other), depending on the assumed relationship between forest values and stand structure.