There is no question as to the severity of water resource problems in the Near East. The Near East is one of the world's most extensive arid regions. Current water shortages could soon reach near crisis proportions. This is particularly severe because the Near East has one of the highest population growth rates in the world and most conventional sources of water are being fully exploited, if not over exploited. For over 30 years AID has been a major contributor to water resources development and management in the region. In its medium-term planning process, AID has identified degradation and depletion of water resources as the highest priority among the environmental constraints in the region. This paper incorporates five Program Outcomes of AID's strategy for improving water resource management in the region over the period 1995-2000. This approach emphasizes increased efficiency of water use, conservation, pollution prevention, and further investment in wastewater treatment and reuse. This paper further explores alternative means for meeting longer term water demands in the region including desalination, reallocation and other means.