Water is an essential natural resource;a key building block of life. However, water use has grownat over twice the population growth rate in the lastcentury. As a result, an increasing number of regions arenow chronically short of water. Over 1.4 billion peoplecurrently live in river basins where use of water exceedsminimum recharge levels. If current water practices continueunchecked, future projections indicate that, by 2025,two-thirds of the world population could be living undersevere water stress conditions. Managing and ensuringsustainable use of scarce water resources is one of the maindevelopment challenges facing countries, states, andcorporations around the world. IFC is committed to workingin the water sector, as water has become an increasingbusiness risk for our clients.In India, Rajasthan is oneof the most water deprived states with respect to rainfalland per capita water availability. The state faces acutewater scarcity challenges as rainfall patterns are impactedby climate change. Increasing agricultural and industrialdemand is placing additional pressure on the state’sdwindling water resources. Rajasthan has some of the lowestsupplies of drinking water in India with only 162 of 222towns in the state receiving regular supply of drinkingwater with the poor being the most affected. Rajasthan needsmore holistic and integrated management of its waterresources. Collective action is necessary to bring togetherthe public sector, the private sector, civil society, andother stakeholders to work together towards integrated andparticipatory solutions for water resources planning andmanagement. This report provides an in-depth andcomprehensive overview of the challenges of drinking watersupply, water quality, and agriculture-water in Rajasthanwith a focus on potential private sector engagements. Thereport offers solutions such as improved technologies andpractices for optimal farm productivity, awareness buildingand infrastructure development through community engagement.