The complexity for a sustainable, adequate supply of water in Cyprus, while ensuring the enhancement and protection of quality and quantity of aquatic ecosystems, continued to raise concerns in Europe and around the globe. This research’s purpose was to find out which solutions are the best practices for sustainable water resource management. Overconsumption of water resources can have dramatic impacts on ecosystems. Cyprus has a semi-arid climate which means that conventional water supply is limited by several factors, and water overconsumption is an additional stressor to the environment. Environmental scientists have been proposing that sustainable management of water use can be achieved through the protection and preservation of aquatic ecosystems, by climate change, and behavioural adaptation and pollution reduction. A water balance for Cyprus was set up. The politically unstable situation due to national jurisdiction causes problems regarding contradictory data because different land areas were included in different data sets. To meet the demand groundwater abstraction was the easy solution since groundwater aquifer supply surpassed the availability of all other sources. Treated water supply in irrigation increased as the available treated water increased throughout the years. The domestic sector was supplied with desalinated water during dry periods because surface water was not enough to meet the demand. Regarding the possible future development for water supply in Cyprus three scenarios were produced. To reduce the water from evapotranspiration so that more water remains in storages, the first scenario focused on climate change adaptation. The outcome from the second scenario which focused on the demand of water in the four sectors was that by including the consumption of the northern area of Cyprus total demand increased and by reducing overconsumption total demand decreased. The sector with the highest water demand was in agriculture. The focus of the third scenario was on water availability from different sources. The most viable solution that follows the sustainable abstraction levels was the combination of all sources.