Libya is one of the world’s poorest countries in renewable water resources, with a per capita share of water that is less than 10% of the global average. Water demand will rise with population, economic, and urban growth. Water use will also change in response to construction projects, security threats, climatic change, food security requirements, and crop demand increase, particularly in the north of the country where most of the population is concentrated. 97% of the country’s total water consumption is sourced from groundwater. Springs, local water wells, and the Great Man-Made River Project (GMMRP) are the sources of groundwater used for urban water supplies. The springs slightly contribute to urban water supply in sparsely populated areas, primarily suburbs and villages. Most local water wells are located in urban areas with no other water sources, particularly Al Jabal Al Akhdar, the central regions, Jabal Nafusa, and the Jifarah plain. Only 53.7% of the 1591 water wells are operational. The GMMRP is currently the primary source of water supply for more than 70% of Libyan cities and will contribute to securing 2.3 billion m3 of water annually if all phases are completed. The projected water demand, which is anticipated to be around 10 billion m3 by 2035, cannot be met by the GMMRP alone. Complementary sources, like sewage treatment and saltwater desalination, must be developed to close the imbalance between supply and demand. Finally, water urban water supply services face serious challenges caused by ageing facilities, ongoing armed conflict, political, economic, and institutional instability, and continuous power and fuel supply cuts. Libya’s water problem is more than just a quantitative shortage of fresh water.