AbstractThe North African region is experiencing water scarcity that is getting more severe with time. The regional annual average per capita water availability has been reduced from 2285 cubic meters in 1955 to 958 cubic meters in 1990 and is expected to reach 602 cubic meters by the year 2025. To meet the present and future water demands of the region the available options are limited to either long distance water transfers from the southern aquifers to the coastal areas or to investing in large scale seawater desalination technology. Economic analysis revealed that the cost of long distance water transfer can escalate to more than 0.83 US Dollars per cubic meter. When sustainability considerations are taken into account this figure may reach up to 2.35 US Dollars per cubic meter. While these figures were competitive with the cost of seawater desalination twenty years ago, the situation has been recently shifted in favor of seawater desalination which dropped from 5.5 US Dollars in 1979 to less than 0.55 US Dollars in 1999. It is concluded that sustainable development of North Africa will depend in the future on large scale desalination as a last resort. Presently, planned water transfer projects should be substituted by this fast growing technology as the best option.