The report looks critically at the waterresources and the current and projected future water demandsin the Southern Gobi Region (SGR) using the widely disperseddata and information that are currently available. Animportant conclusion of the report is that almost all thesignificant sources of groundwater in the SGR are'fossil' or 'non-renewable', meaningthat they are finite resources which cannot be replenished.Not only will that, but pumping water out of these fosilaquifers tend to cause a drop in the groundwater levelsabove them. The report proposes practical steps by whichwater resources development and management could be managedto best serve economic and infrastructure development whilegiving attention to environmental protection and service tocommunities in the SGR. The report also highlights theurgent need for more data. A more detailed picture of thedistribution and quantity of the groundwater would giveplanners first, a better idea of both the limits to thegrowth of the SGR; and, second, of the future water demands,its spatial distribution, quality requirements, and thepossibilities to increase water use efficiency and waterre-use. Thus there is a need to bring all information anddata together to form the basis for rational planning.