Israel is a semi-arid country, and a significant increase in population combined with sustained economic growth now place enormous pressure on the countrys scarce water resources. To date, the Israeli government, however, has been successful in addressing this problem. Rigorous enforcement of policy, institutional and legal measures has been very effective, and in many aspects the country is a worldwide leader in water resources management. This paper therefore reviews Israels efforts in this area in order to identify lessons that may provide useful insights for developing countries-such as China-whose future economic growth is also threatened by water scarcity.