Private Sector Participation; a Tool for Effective Water Demand Management in Jordan Eng. Ibrahim Abushams, Ministry of Water and Irrigation/Jordan  Eng. Iyad Dahiyat, Ministry of Water and Irrigation/Jordan  Abstract Water is an indispensable input for any social and economical well-being. Its scarcity can impede development and evolution and make a negative impact on standards of living of the people. Urban water demand grows rapidly over time, as the population expands and the standard of living improves. This raises the need to consider future demands in present decisions.  Economic value of water has been debated for decades combined with increases in water scarcity in many parts of the world, especially in developing countries, which helped to intensify this debate in recent years. Water policies have to improve the existing water demand management practices, water resources planning, and promote its rationale use by influencing the behavior of the users. It is agreed that proper water management techniques can reduce misallocation and misuse of water, promote efficient use, reduce water quality degradation and improve the financial situation of governmental agencies as well as service delivery to the users, especially the poor.  Private Sector Participation (PSP) in water utilities management has been considered as a tool to better and more effective management through improved practices. Under PSP, several management programme can be adopted to achieve water savings such as increasing the system efficiency through leakage control and better management, universal metering and pricing, improved customer services, public education for creating a water conservation culture and elimination of the illegal connections.