Water scarcity and drought affect all social and economic sectors and threaten the sustainability of natural resources. Addressing water scarcity requires an intersectoral and multidisciplinary approach to managing water resources in order to maximize economic and social welfare in an equitable manner without compromising sustainability of vital ecosystems. Integration across sectors is needed. This integration needs to take into account development, supply, use, and demand and to place the emphasis on people, their livelihood, and ecosystems that sustain them. On the demand side, enhancing water productivity (the volume of production per unit of water) in all sectors is paramount to the success of programs intended to alleviate water scarcity. Furthermore, protecting and restoring the ecosystems that naturally capture, filter, store, and release water, such as rivers, wetlands, forests, and soils, are crucial to increasing the availability of water of good quality. It is in this context that this chapter provides further insight to the global challenges faced in the context of water scarcity and drought. Some of the strategic solutions developed in different parts of the world are discussed to understand implications on the sustainability and efficient use of resources.