Water Supply in Egypt represented by the River Nile water share of the country is fixed at 55.5 billion cubic meters per year since the year 1959 according to an international agreement with Sudan. Population growth in Egypt is hardly maintained at about 2%. The Egyptian population was only less than 30 million at the time of the 1959 agreement, at the present time this population exceeded 75 million, creating progressive fall in per capita share of water. Water in Egypt is an important input to all development and service activities. Domestic water supply takes almost 9 bcm/year of the national water budget, industry exploits between 5-7 bcm/year, agriculture consumes more than 80% of the total inflow and non consumptive uses such as hydropower generation, inland navigation and environmental water needs are released to satisfy other needs. Successive water policies in Egypt up to the 1997-2017 policy were development based, i.e. first priority was given to domestic uses followed by industrial requirements, and the remaining was allocated by default to agriculture. However, by 2017 no more expansion in agricultural land can be realized. The reason is the fact that cultivated area by that time will reach 10-11 million feddan, leaving no more supply for increment. By 2017 Egypt has to base its water policy on allocation. Every increase in the domestic, industrial, tourism…etc requirements will certainly be deducted from the share of agriculture. Therefore, agriculture has to consume less and produce more. It would be challenging to reform the Egyptian institutions to cope with such huge changes, to attract stakeholders' participation in managing the water system especially at its low levels, to encourage private sector to invest in water projects and to make use of public private partnership in water issues.