The great water illusion
By Dr George Christodoulou
Public discussion on water scarcity in Cyprus frequently focuses on network losses, household consumption, or the misuse of water for cleaning pavements. While these issues matter and should not be dismissed, international evidence suggests that such debates often miss the central structural problem: continuous population expansion and development in a country with inherently limited water resources.
Non-revenue water (NRW) – the volume produced but never billed – is often presented as the primary evidence of mismanagement. In Cyprus, NRW hovers between 20 per cent and 35 per cent, but a staggering 15 to 25 per cent of this “lost” water is not actually leaking into the soil. Instead, it is lost to the ledger through metering inaccuracies caused by roof-mounted storage tanks. While the 2026 nationwide rollout of smart meters will recover this lost revenue, it will not expand the physical resource. Efficiency improves the balance sheet, but it does not create new water.
As Cyprus navigates early 2026, the government has allocated an emergency €196 million – the largest sum in history – to combat a drought that has left reservoirs at a haunting 11.8 per cent capacity. This confirms a new reality of “extreme water scarcity”, where natural availability has fallen to 390 m³ per capita, well below the international danger threshold of 500 m³. Simultaneously, domestic water demand has tripled since 1991, driven by a development model fixated on construction and luxury real estate.
Construction activity increases water consumption both directly and indirectly. New residential developments raise long-term demand, particularly where landscaping and swimming pools are common: a single pool can consume as much water as five people do in a year.
The “labour to build and foreigners to buy” strategy has effectively doubled the functional population during peak periods, placing an immediate and cumulative strain on the supply. Tourism adds a strong seasonal peak, with studies showing that tourist water use in Mediterranean destinations can be two to three times higher than that of local residents, peaking during the driest months.
Desalination has become a cornerstone of national policy, now covering more than 70 per cent of urban needs. However, the World Bank and European Environment Agency caution that desalination is not a fully sustainable solution. It depends on high energy inputs, carries environmental costs and exposes the water sector to energy price volatility. Over-reliance risks postponing essential reforms in demand management. A sustainable model requires the €142 million water procurement budget to be paired with dedicated renewable energy parks to prevent water security from sabotaging our climate goals.
Ultimately, building permits and tourism capacity can no longer be issued in a vacuum. They must be tied to regional “carrying capacities”, as we cannot plan for a growing economy while ignoring a shrinking water supply. NRW is a management issue, but water scarcity in Cyprus is a structural one.
We are currently spending record amounts to purchase desalinated water – a fiscal burden that proves we have hit a physical wall. On an island, acknowledging limits is not an admission of failure; it is the starting point for genuine sustainability.
Fixing the leaks in our pipes is important, but it will only provide temporary relief if we continue to build an economy that ignores the size of the island’s bucket.
Dr George I. Christodoulou holds a CEng, MCIWEM, C.WEM