Large scale projects to desalinate seawater, direct water from rivers and reservoirs in the north, make optimal use of groundwater, and reclaim flood overflow and sewage have been undertaken.

This was one of the events that increased tensions leading to the Six-Day War of 1967 during which Israel captured the West Bank and the Golan Heights.

It provides 20 million cubic meters of treated wastewater per year for agricultural use in the fertile Jezreel Valley, maximizing distribution potential during high-demand periods.

The 1995 Interim Agreement as part of the Oslo Peace Process provided certain quantities of water to the Palestinians, but prevents them from drilling any new wells in the Mountain Aquifer.

[11] In March 2008 National Infrastructures Minister Benjamin Ben-Eliezer and Water Authority head Uri Shani began to explore options for new wastewater treatment plants and reservoirs.

[14] However, a vigorous water savings campaign was then started featuring videos by famous Israelis such as singer Ninet Tayeb, model Bar Refaeli and actor Moshe Ivgy.

[15] In its final report in March 2010 the commission of inquiry, headed by former judge Dan Bein, concluded that changes were needed in the Water Law of 1959.

When completed, most drinking water supplied to Israel's residents from Hadera southwards – in other words, most of the country's population – would come from desalinated seawater.

Historically, Israel had about 1,780 million cubic meters of conventional freshwater and brackish water resources at its disposal in an average year.

Several hundred million cubic meters of groundwater in the West Bank Mountain Aquifer are disputed between Israel and the Palestinians.

Under the 1995 Interim Agreement as part of the Oslo Peace Process, Israel provided 52 million cubic meters of water to the Palestinians in 2011, but prevents them from drilling new wells in the Mountain Aquifer.

The winters of 2002–03 and 2003–04 were characterized by average and higher-than-average rainfall, which led to a significant rise in the water level of the Sea of Galilee and in the collection of floodwater in catchment reservoirs.

The drainage basin of the Menashe plant is 189 square kilometers, capturing about 12 million cubic meters in an average year.

An example is the Arab village of Kafr Manda in the Western Galilee, whose wastewater is being treated and reused for irrigation in the neighboring Jewish community of Yodfat.

In early 2002, under the impact of drought, the government approved the construction of large seawater desalination plants along the Mediterranean coast.

[34][35] The project was developed as a BOT (Build-Operate-Transfer) by a consortium of three international companies: Veolia water, IDE Technologies and Elran.

The authors of the report claim that this would reduce the need for massive desalination of seawater and the environmental damage it causes, including the emission of greenhouse gases.

[62] In March 2017, a national survey was published that concluded that there is an extremely high rate of serious iodine deficiency among the Israeli population, and in particular among pregnant women (85%) and school-age children (62%).

[63] The researchers mentioned the lack of a national salt iodisation program and the heavy dependence on iodine-depleted desalinated seawater as reasons for this major public health problem.

[63] The concerns include a "high risk of maternal and fetal hypothyroidism and impaired neurological development of the fetus", and the professor leading the study stated that iodine deficiency has lowered the IQ level of Israeli children by four to five points over the past 50 years.

[64] The Southwest Center for the Study of Hospital and Healthcare Systems in cooperation with Rotary International is sponsoring a rainwater harvesting model program across the country.

An analysis of results since 1989, when disinfection of groundwater was first introduced, has shown a constant improvement in the quality of drinking water, with the percentage of violations decreasing from 8.4% in 1989 to 2.1% in 1999.

Maximum levels for 38 new chemical substances—including pesticides, organic solvents and petroleum products—were set for the first time while existing standards for nitrates, lead, cadmium and zinc were tightened.

Since some aspects of the management, protection and allocation of water resources fall into the spheres of other Ministries, the exercise of certain powers requires their consent.

[80] An example of a multi-municipal utility that precedes the 2001 law is the Dan Regional Sewerage Board (Shafdan), which includes seven municipalities in and around Tel Aviv.

mid-2014,[update] the Ministry of Energy and Water planned to present a law to Parliament that would allow utilities to return profits to their customers in the form of refunds.

[85] In June 2013 the Finance Ministry and the Council of Local Authorities reached agreement that the base water tariff will be reduced by 5% by the end of 2015.

[84] Mekorot bulk water tariffs The prices Mekorot is entitled to charge are the rates set by the Ministers of Energy and Water and Finance, approved by the Knesset's finance committee, and updated from time to time according to the changes in the Consumer Price Index, electricity rates and the average wage index.

[89] Mekorot receives a subsidy from the Ministry of Finance to cover the difference between its supply costs and the tariffs it is allowed to charge to its customers.

For a number of years Mekorot's fundraising instruments (primarily, bond offerings) have been awarded the highest AAA rating by the Ma'alot credit rating agency based on the following factors: Because tariffs established by the government are low and do not cover Mekorot's operating costs, the company receives compensation for the difference between what it costs to produce a unit of water and what it is allowed to charge.