Integrated water resources management in the Jordan River basin is hindered by the complex hydro-political situation characterized by natural water scarcity, the shared nature of water resources, conflicting demands, and intensive development and use of resources. In addition, the lack of final regional water agreements defining the exact shares, roles and responsibilities of each riparian, especially the Palestinians, coupled with the lack of adequate water laws, regulations and plans governing water in Palestine, make it difficult to manage these resources efficiently, especially under the given uncertainties. The foremost significant uncertainty is that related to climate change in general and to drought in particular. Changes in climate over the years have assisted in aggravating problems in water quantity and quality. Given that the region is characterized by high variability in rainfall depth over time and space, the occurrence of a drought event is highly random. In 1998/99, the winter rainfall was the lowest of the past 100-year long history of rainfall records. This drought has led to water quality deterioration, a drop in groundwater levels and decline in spring discharge. Accordingly, water shortage has become very acute and available supply falls short of meeting demand. Under the foreseeable future scenarios of population growth and development needs, this water shortage is expected to intensify. The average population growth rate is estimated at 4%, which means that the population is expected to double in the coming two decades.