An untraditional multi-objective programming approach, called as fuzzy game multi-objective optimization model (FGMOM), is illustrated to discuss suitability and significances in the problems of sustainable watershed management. FGMOM is developed based on the combination of fuzzy set theory, game theory and traditional multi-objective programming. The model is implemented to support decision making process for balancing economic and environmental paradox in reservoir watershed management. Particularly in this study, FGMOM is used as an alternative tool for analyzing strategic interaction between economic development and environmental protection which is involving vague and imprecise information related to data, model formulation, and the decision maker’s preferences. Results show that analysis of economic and environmental balance can be easily interpreted to aid the decision maker for watershed management. For comparison, a traditional multi-objective approach was used to contrast the comprehensive use and robustness from FGMOM analysis. In addition, the application of FGMOM is further discussed.