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Use of PRV in potable water network in WaterCAD

I am using a PRV to control the pressure downstream. My model has 2 reservoirs. The PRV is placed on the pipe which isolates the loop upstream of it. This gives me a looped network upstream of the PRV connected to a reservoir (R-1). I have another reservoir (R-2) which is downstream of the PRV and another looped network is supplying water on the downstream. I had to use the PRV as the elevation of R-2 is much lower than R-1 and is causing water to flow into R-2, making it act as a storage. Also due to lower elevations downstream there is pressure beyond the permissible limit at the junctions. Now when I used the PRV the pipe it is connected on is giving me a zero flow. Why is this happening? Now the downstream network is being supplied by R-2 and the upstream is supplied by R-1 and looks like they are functioning independently on these two reservoirs.

Is there a better solution to tackle this scenario? How can i tackle the increase pressures downstream.