This thesis addresses the possible solutions to control demand and supply of water for a sustainable environment in Mexico, along with a detailed analyses of economic implications related to the water sector. At the same time it focuses on the opportunities and constraints to improve the use of water and the allocation in the agricultural sector, by a system of transferable water-use permits. Actual examples are provided nationwide to the current situation in Mexico, focusing on problems related to water scarcity, waste-water and water pollution, with emphasis on Mexico City. Finally, an overview of desalination technologies and their implications in Mexico will be described at the end of the thesis.