At present, all economically attractive sites for dam construction have been exploited. From the engineering side, it is possible to construct more; however the venture would entail significant investments, and it is estimated that the resulting water cost would be higher than the water cost corresponding to the already developed infrastructure. Additionally, the cost of utilizing alternative water sources, such as desalination or recycled water is even higher.

Almost 60% of available water resources are currently used in the agricultural sector, which has a minor contribution (less than 5%) in the overall national wealth. The issue is further complicated by the traditional two-tiered nature of water rights: users of water systems owned by the Government pay the established tariff, while owners of wells do not pay. Under such conditions, an increase in water tariffs of the public systems is bound to encourage further overexploitation and mismanagement of groundwater. The concept of equity among farmers depending on surface water distribution and those depending on groundwater does not exist. The realization of a policy of uniform water rates over the island remains a difficult problem.

The introduction of higher irrigation water prices, always provokes opposition of the politically strong agricultural lobby in spite of the fact that the increase is accompanied by various compensational financial measures. The lobby’s argument is that agriculture is important because it ensures the supply of strategic food and raw materials to the nation and for social and even envirobnmental considerations agriculture should be further subsidized and nor penalized with higher water prices.

The co-operation between different agencies and services for the management of water resources can be considered adequate when taking into account the different approaches and goals set by each. However, the fragmentation of responsibility has caused many problems in all sectors. With one department being in charge for water management at the executive level (WDD), the technical situation is very good. However, effective decision-making, implementation of works and legislation enforcement remain difficult, as legal and management responsibilities are allocated to the District Officers. These difficulties lead to considerable delays in project authorization, implementation and overall water management.

Through various laws, the District Officer is the controlling authority at the user level. The WDD and the Department of Agriculture assist the District Officer in an advisory capacity on technical matters. This cannot be considered as a satisfactory arrangement, because multiple authorities are responsible.

For example, the District Officer by Law, is responsible for the issue of drilling and water use permits. Usually but not always, the advice of the Water Development Department is requested. This has repercussions both on the management of the aquifers but also on agricultural activities. The District Officer (Ministry of Interior) is the chairman of the Irrigation Divisions and the Town Water Boards, while the representative of the Water Development Department participates as advisor. Although there is generally good cooperation among the District Officer and the Technical Departments of the Ministry of Agriculture, Natural Resources and Environment, frequent conflicts of interest do not allow for the implementation of clear policies. This in turn may result to a non-sustainable management of scarce water resources.
It is broadly recognized that this fragmentation, especially at user level where the WDD is only an advisor, has many disadvantages. This situation is expected to change with the creation of the “Directorate for Integrated Water Management”, which will be the only national authority with the responsibility to undertake the management of the water resources of Cyprus.

The implementation of the Water Framework Directive (WFD) in Cyprus is in progress. Specifically, an implementation programme has been prepared, where required actions has been defined according to the milestones set by the EU.

Contacts have been established with each EC Working Group, with the intention of monitoring the work carried out. Particular importance has been given to the first stages of the implementation of the Directive, which are considered crucial and important for its effective implementation. The responsible authority for the implementation of the Directive is the Ministry of Agriculture Natural Resources and Environment.

The two “Lead Agencies” which will methodically implement the requirements of the Directive are the Water Development Department and the Environmental Service. Other departments will be involved according to the issues under consideration.

The most significant implementation problems which are foreseen in relation to the existing conditions in Cyprus include:

• Insufficient quantitative and qualitative data which are required for the initial crucial steps in implementing the Directive;
• Lack of a rationally organised national network for monitoring and collection of information, as well as the lack of a unified database;
• Difficulties in the co-ordination among the responsible authorities and all the other involved agencies;
• Limitation of sufficient expertise and appropriate human potential and necessary technological means;
• The attitude of water users;
• High implementation costs;
• Fragmentation of responsibilities, jurisdiction and lack of a unified Water Authority;
• Particular difficulties due to extended periods of drought and the fact that the WFD is more adapted to the large water basins of Europe.
• The reduced interest of farmers towards agriculture due to lack of labour and lack of effective marketing of agricultural produce;
• The need for integrated water management, in particular the linkages between irrigation and municipal demand and supply;
• The need for demand management through water conserving technologies, pricing, public awareness and water allocation and regulation.