Water scarcity in North Cyprus (NC) began in the 1960s and is still tremendously increasing. Thus far no serious measurements have been taken to address this problem. Increased water demands led to extraction of water from unrestricted groundwater resources. Extreme water extractions caused the salinization of coastal aquifers up to brackish waters and the consequent depletion of interior aquifers. Such a situation requires precise control of water resources through an integrated water resources management (IWRM). Although the situation has reached an alarming state, no detailed research has been performed to establish the present demands of water in order to anticipate the future demands. Hence, this study, based on the IWRM approach, examines water budget of the country.