Rural regions are often seen as keysources of urban water supply, creating pressure forreallocation and potential hotspots of competition for waterbetween cities and agriculture. How effective and equitableis reallocation from rural to urban regions, and what havewe learned from the global experience? This synthesis reportexamines the drivers, processes, politics, and outcomes ofreallocation based on a review of the literature andinsights from four in-depth case studies where governmentshave reallocated relatively large volumes of water fromrural to urban regions: Melbourne, Australia; Mokopane,South Africa; Monterrey, Mexico; and São Paulo, Brazil. Thefindings suggest that water reallocation can play animportant role in regional development. However,reallocation projects have also been controversial becauseof distributional conflicts regarding who wins and loses.The concept of benefit sharing, long applied totransboundary river basin management, offers a framework fordesigning effective and equitable reallocation processes,shifting the focus from dividing the water to sharing thebenefits among rural and urban regions. The reportidentifies seven key lessons for realizing the potential ofreallocation and limiting the risks.