Despite the well-recognized role ofwater in transmitting climate impacts to some of the growthdrivers of the economy, the water sector has been largelyignored in climate change deliberations. The impacts areprojected to vary regionally, and are likely to includechanges in average hydroclimate patterns (precipitation,surface runoff, and stream flow), as well as increases inthe probability of extreme events.Climate shocks arelikely to impose higher costs than gradual changes inclimate averages. Prudent management of water resources willbe pivotal in addressing the climate challenge—both foradapting to the effects of climate change as well as formeeting global greenhouse gas mitigation goals. The preciseconsequences of climate change on the hydrological cycle areuncertain, which makes adaptation especially challenging.Uncertainty regarding impacts is partly a consequence of thelimitations of climate models. Despite improvements inclimate science, the Global Circulation Models developed toproject climate futures generate a wide range of projectionsthat often disagree on both the direction and magnitude ofprecipitation changes. Furthermore, these models have notbeen designed to predict changes in the hydrological cycleand lack the precision required for planning and managingwater resources. In addition to this, changes in thehydrological cycle imply that future water systems may notresemble the past (non-stationarity), so historic trends asused in engineering designs, no longer serve as a reliableguide for assessing and managing future risks. This studypresents an investigation of the impacts of climate changeon water resources throughout the world, and specificeffects on water dependent sectors of the economy such asurban, energy, and agriculture.The results can be used toillustrate the centrality of water in achieving globalclimate change goals.