As water issues associated with hydraulic fracturing have received much attention, several optimization approaches have been developed for effective water management. However, most of them have not considered pumping schedules for hydraulic fracturing, which determine the productivity of a shale well as well as the total amount of freshwater required. Because of this, a novel model-based control framework is proposed for hydraulic fracturing to maximize the net profit from shale gas development which simultaneously minimizes the total cost associated with water management. The framework is as follows: initially a reduced-order model and a Kalman filter are developed based on the simulation data generated from a high-fidelity hydraulic fracturing model to correlate the pumping schedule and the final fracture geometry. Then, a numerical reservoir simulator and mixed-integer nonlinear programming model are used to generate two maps describing the revenue from selling shale gas produced and cost from managing wastewater recovered, respectively. Finally, by applying a data-based dynamic input-output model to connect the two maps, an economic model predictive control system is formulated. The proposed control framework enables 62% of the generated wastewater to be reused through the application of thermal membrane distillation technology in the treatment process and results in a 11% reduction in overall freshwater consumption, while maintaining the productivity of a shale well at its theoretical maximum.