Water management on islands faces unique challenges due to limited size, isolation, climate change impacts, and economic development needs. These factors intensify water scarcity, highlighting the need for sustainable resource development through multidisciplinary approaches. Cyprus, the third-largest Mediterranean island, exemplifies these challenges, with the lowest water availability per capita in the region and severe water scarcity exacerbated by climate change. Addressing these issues requires a comprehensive master plan that integrates technical, environmental, social, and economic factors, focusing on climate change impacts on the water cycle. The Energy, Environment, and Water Research Center (EEWRC) plays a pivotal role in global resource management, emphasizing sustainable development goals and Integrated Water Resources Management Policy. EEWRC’s key initiatives include hydrodiplomacy and WEF Nexus and Integrated Water Resource Management IWRM, monitoring sediment transport pollution, water quality monitoring of basins and aquifers, smart water management of conventional and non-conventional water, and nature-based solutions for water and land management integration. To improve water management in Cyprus, establishing a National Commission for Water Experts is recommended. This commission would provide a detailed roadmap for water management, aligning with Sustainable Development Goals (SDGs) and the Climate Change Initiative coordinated by the Cyprus Institute. Additionally, organizing a conference focused on “Cyprus Island Water Management” would help launch this concept. In conclusion, it is crucial to develop a long-term strategy for optimal water resource management in Cyprus, addressing water issues, promoting conservation, launching climate-resilient initiatives, and fostering collaboration with national and international entities for success.