For the Hemavathy reservoir in South India, selected within-year hedging policies have been evaluated for performance with the aid of a periodic stochastic reservoir simulation model, based on which the decision regarding the best hedging policy is obtained. The hedging approach adopted in this paper is concerned with the month and the degree of hedging (hedging factor). The variation in the performance indicators with respect to target demand has been studied for all the hedging polices considered and the standard operating policy. The variation of the performance indicators with degree of hedging is analysed.