Nowadays many scientists and specialists say that in the twenty-first century, not hydrocarbons but water will be the key issue for economic development, well-being, and quality of life. This fully applies to the Central Asian countries where historically the problems of water resources have been in the focus of attention as the main factors determining stability in all sectors of the economy. This is connected with their geographical location and specific natural conditions. The Central Asian states locate in a region with severe climate featuring very high temperatures, uneven spatial distribution of water resources, and their insufficiency as no mechanism for addressing water issues is available. By the early twenty-first century, all water supply reserves in the region have been practically exhausted. The situation is aggravated by the fact that the river basins in this region are transboundary and their watersheds do not coincide with the existing state borders. In addition, the economies of the Central Asian countries depend enormously on the use of transboundary water resources adding complexity to the water relations among these states which may be fraught with ethnic and social conflicts. The problem is aggravated by differing hydropower priorities of the countries located in the upper reaches of rivers, such as Tajikistan and Kyrgyzstan that control more than 80% of all freshwater supplies, and agricultural needs of the downstream countries – Uzbekistan, Kazakhstan, and Turkmenistan. In other words, some of the countries need electricity, while others water for irrigated farming.