Israel, Jordan and Palestine are partners in the geography and hydrology of the Jordan River Basin. At the same time the demographic development of the countries is closely interlinked. The paper examines the interdependence between demographic developments, water scarcity and resource conflicts in the Jordan River Basin. One major issue of conflicts is emphasized: growing competition between different users and sectors, in particular between agriculture, on the one hand, and municipal/ domestic water supply, on the other, as a result of the heterogeneous population growth in the region. The potential of re-allocation-strategies to cope with increasing demand for drinking water is discussed, focusing on the concept of virtual water trade.