The most important law with regard to the management of water resources in the country is the Government Waterworks Law. Nevertheless, it can be considered that the law fails its purpose, since it does not explicitly define one single administrative authority having the effective and overall responsibility for the management of water resources and waterworks. Instead, the law bears the fragmentary nature of responsibility, which is a great impediment to the effective water resources management.

Water management in Cyprus has met difficulties due to the inherent legal and institutional framework. Most of these problems have been on the discussion table in the past 40 years, and many proposals and legislation formulations have been forwarded for ratification. Nevertheless, the entry of Cyprus in the European Union gave a new impetus for addressing these problems; however, up to this moment no final decisions have been taken.

Most problems arise from the fragmentation of jurisdiction in the planning, design, implementation and control of water resources management. The WDD is responsible at the executive level for water management at the technical level and to this effect the situation is very satisfactory. However, effective decision-making, implementation of project and enforcement is made difficult, as legal and management responsibilities rest with the District Office of the Ministry for the Interior. These difficulties lead to considerable delays in project authorization, implementation and effective 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, as advisors in technical matters. This is not considered as a satisfactory arrangement because there is no single agency responsibility. When there is conflict of interest and purpose, the technical departments are unable to support the implementation of agricultural policies (even though agricultural policies should be a major criterion in approving irrigation water works) and to define domestic supply allocation.

As however, presently changes are being considered, a restructuring of the water industry in Cyprus into a more unified set up or single institution is expected. Some existing laws will need to be reviewed and a new water code will have to be enacted, covering all functions associated with water in its widest context.