Analysis of Water Allocation in Aqaba Peter Waller, Associate Professor Agricultural and Biosystems Engineering Department The University of Arizona. Email: Pwaller Akrum H. Tamimi, Assistant Professor, Department of Sustainable Natural Resources and Management, Hebron University. Project Coordinator for the Sustainable Development of Drylands in Asia and the Near East International Arid Lands Consortium, Office of Arid Lands Studies The University of Arizona. Email: akrumt Abstract The City of Aqaba is growing fast. Irrigated areas, industrial capacity, and tourist facilities are expanding at the same rate as the City of Aqaba. As a result, water demand will increase, and new sources of water must be found. At the present time, all of the water supply comes from the Disi aquifer. Through a treaty with Saudi Arabia Aqaba is entitled to 20 million m3/year from the Disi aquifer. Two of the planned sources of new water are reclaimed wastewater and desalinization of seawater. The new desalinization plants are expected to deliver 11 million m3/year while treated wastewater production is expected to reach 6.6 million m3/year in 2020. At the present time Aqaba’s water use is divided as follows: 45% to industry, 35 % to residential, and 20 % to Aqaba Special Economic Zone Authority (ASEZA), hotels, and the tourist industry. The largest industrial user of water is the phosphate plants in Aqaba.  Allocating new water sources between users should incorporate both economic and environmental criteria. Three water allocation decisions are addressed in this study from both an environmental and economic perspectives: using treated wastewater for irrigation of municipal landscapes within the City of Aqaba, using treated wastewater for irrigation of a proposed golf course in Aqaba, and, finally, the construction of new phosphate plants with planned use of treated wastewater.