The supply of renewable natural water available in a sustainable fashion in the Jordan River Basin, comprising Israel, Jordan and the Palestinian Authority, will soon drop below 100 m3/person/year. Drawing on recent technological progress and policy innovations, a comprehensive policy to address the region's water problems in the long run is offered. The policy has a dual goal: to satisfy the needs of a growing population (domestic, irrigation and industry) and to preserve important environmental amenities, including restoration of the Lower Jordan River and stabilization of the Dead Sea level. The gap between natural water supplies and the basic needs of the growing population will be closed by conservation and desalination; at the same time, all domestic water will be recycled and will be available for reuse in irrigation and environmental restoration. Over time the supply of recycled water that should be allocated for environmental restoration (accounting for the compensation of irrigators) will suffice to partially restore the Lower Jordan River and contribute to the stabilization of the Dead Sea. The analysis is relevant in a wide range of real-world situations, where satisfying the basic needs of a growing population and preserving environmental amenities become critical.

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