blood of all nations is water, in particular a country like Saudi Arabia where water is scarce, and there is a need to ensure continued and sustainable supply. At a recently completed conference in Riyadh, delegates grappled with how this can happen taking into account the expected surge in use in this country. Saudi Arabia has started working seriously on the problem by setting a target of 11 percent of its water use to come from treated wastewater, which is suitable for domestic and industrial uses such as landscaping. This country's advanced treated water reuse capacity is growing at more than 30 percent annually and is expected to reach 2.2 million cubic meters per day by 2016 from a current level of 260,000 cubic meters per day, according to reports. With the Kingdom being one of the fastest growing economies in the Middle East, wastewater and water reuse issues need to be addressed urgently to sustain this rapid growth. Delegates at the event discussed research on various incentive policies and structures to increase water reuse and recycling in a white paper entitled “Creating Effective Incentives for Water Reuse and Recycling”. That just-released study forecasts that the world's urban and industrial water use is projected to double by 2050, yet one fifth of the world's population, or some 1.2 billion people, already live in areas of water scarcity. The paper noted that one major stumbling block to reuse is a lack of effective incentives. Cost-effective technologies already exist to solve virtually all water challenges, thus the focus needs to be placed on the human side of the equation, said one delegate. Four main approaches were outlined, including increased education and outreach so that people can see the need and the benefits; removal of bureaucratic and other barriers; effective use of mandates and regulations; and establishment of effective incentives. The paper discussed four possible policy options: water pricing/discharge fees, water quality and demand trading, tax incentives and public-private partnerships. For example, Singapore's goal is to use reclaimed water as a key part of its water supply. The island city-state merged several governmental units into a centralized Ministry of Environment and Water Resources, and it has been a major factor in helping the country realize a 30 percent water reuse rate. Saudi Arabia needs to start reusing water at this rate if it is to ensure a sustainable future supply. __