The Institutional setup as now existing is a rather complex and bureaucratic system made up of at least four involved Ministries on the policy level, 15 Government Departments on the executive level, and a great number of Organisations on the Water Users level either for domestic water supplies or irrigation. Water laws are many and complex, including dublications. These have been enacted from time to time in the past as needs demanded, so as to cover the requirements of various water-related interests and authorities, without ever making an effort to group them together in an organized form or code.

The conflicting and competing uses as a result of the current development pattern, pose great pressures on water management responses. A good example demonstrating the complexity of the issues to be resolved related to conflicting and competing water uses, is the Limassol region which is one of the main tourist destinations in Cyprus, while agricultural production in the area accounts for more than 25 % of the fruit trees, 6% of the vegetable and 20% of the table grapes production of the country.

The subsidized water price for irrigation water compared to the full cost recovery for domestic supply does not promote healthy competition and water conservation measures. As a result, Moreover, there are demonstrations against inter-basin transfers of water with the local farmers demanding full coverage of their demand before any transfer is made.