Water and life are closely linked. This has been known throughout history and it is still the issue with specialists today. Water has always been scarce in Palestine, but growing populations place ever-increasing demands on the limited resources of water. Competing demands for water may lead to disputes between consumers and nations. Moreover, water scarcity can be classified as a major concern in the Palestinian territories where access to and control over water resources is a constant issue in human survival. The shortage of water affects the Palestinians' public health and economy at large. The shortage of drinking water can lead to illness, and affect every function that water plays in human survival and livelihood. However, empirical studies that can contribute in providing information on economic efficiency, equity of water distribution, and water management are necessary in Palestine, which may play an important role to mitigate the water crisis in the Palestinian territories.