Water reform policy in developing countries, where economy is mostly agricultural based, is the main precondition for sustainable agricultural economic development. Since water is an important input in all economic sectors, particularly agriculture, climate changes and water scarcity will be two important aspects that should be looked into and worked on in this millennium. Providing sufficient water for use, especially in agriculture sector, is one of the major problems facing the developing countries such as Iran. Water-reforms are important, while the multi-oriented issue of sustainability is of interest as well. The pros and cons of water-reform policy are discussed in this project.