Low rainfall over the past few years highlighted the need for a systematic and comprehensive approach for the proper and effective management of the water resources of the island of Cyprus. It is evident that due to population, agriculture and industry growth the demand for water has increased significantly and since traditional water sources cannot meet the demand, the production of desalinated water to meet the deficit in the water balance is the offered solution. This paper describes the measures taken and procedures adopted by the Water Board of Lemesos in order to manage the potable water supply to the town and environs of Lemesos under water shortage conditions and the costs incurred. A brief account on the construction of desalination plants on the island is also given.