The analysis of Gaza’s water sector in this study complements our previous study on the electricity sector. The fundamental problems of both sectors are intertwined, and rooted in Gaza’s governance problems as well as Israel’s continuous siege of the Strip. There is a need for a major reform of water and electricity public institutions in Gaza; while expediting work on raising electricity output. However, these reforms will not be implemented unless Gaza’s governance takes the lead in raising bill collections, reducing leaks and diversions of both electricity and water, raising tariffs and establishing a binding legal framework.

Correspondingly, as long as Gaza’s economy remains depressed due to Israel’s restrictions on trade, movement of people and access to its resources, implementing such institutional reforms becomes very difficult. The constant threat of war and political instability further discourages private investment and external aid.

Given the political and economic context of Gaza, only a holistic and comprehensive action plan driven by the donor community, in cooperation with Israel, the Palestinian Authority and local infrastructure institutions in Ramallah and Gaza, can address the interrelated problems of water, energy and governance. To energize the electricity and water sectors and lead them towards financial sustainability, the donor community is urged to take a proactive position and lead such a holistic and coordinated action plan.