The main water and irrigation strategy is concerned with the development and conservation of water resources. This is done through adopting water rotation for irrigation canals, limiting the rice growing area, lining irrigation canals in sandy areas and prohibiting surface irrigation in the new developed areas outside the Nile basin.

Recent water resources policies include different structural and several non-structural measures. Structural measures include: irrigation structures rehabilitation; improvement of the irrigation system; installation of water level monitoring devices linked to the telemetry system; and expansion of the tile drainage system. Non-structural measures include: expansion of water user associations (WUAs) for irrigation ditches; establishment of water boards on branch canals; promotion of public awareness programmes; and involvement of stakeholders. The most recent water policy was drafted in 1993. It included several strategies to ensure satisfying the demands of all water users and expanding the existing agricultural area at that time of 7.8 million feddan (about 3.12 million ha) by an additional 1.4 million feddan (about 560 000 ha).

The issues of cost recovery have started receiving increased attention in Egypt. It is considered as an approach to generate additional revenue which could be used to operate and maintain irrigation systems, and even repay some, or all, of the investment costs. It could help also in conserving water uses by the farmers.

The effectiveness of a costs recovery policy to achieve its expected objectives is dependent on many factors, among which are the system through which water consumption is measured, and the relation between existing taxation and water subsidy and the proposed water charging one. Farmer's reactions to such changes in policies are not easy to predict in advance of the implementation of such policies. The identification of beneficiaries and the possibilities of charging the external costs like damages to the environment should be explored. Consideration has to be given to what type of system could be instituted that would be equitable, generate revenue and simultaneously promote more efficient water use than is the case at present. In July 94 the Egyptian people's assembly passed a law to charge the MPWWR to implement a cost recovery law on the Mesqa level. The same law sets the procedures to establish farmer's water users association and the irrigation advisory service.