Throughout the Middle East, the natural facts of water supply and the socio-political facts of water control, consumption and demand interplay to form a complex hydropolitical web. The allocation of the region's three major river basins – the Nile, the Euphrates – Tigris and the Jordan – are nascent sources of tension, and potential sources of conflict. The paper discusses the hydro-geopolitical setting in the Middle East, in addition to elements of the Arab-Israeli water dispute. It then talks about water and peace, and gives practical suggestions to solving related problems.