The Gulf Cooperation Council (GCC) states are facing an increasingly high demand in water and electricity supply to meet higher standard of living and developments in various economic sectors. The GCC governments have been able in the past to satisfy most of the demand with a high subsidy, which was affordable. Oil income has decreased considerably in the last few years, which makes it impossible for the governments to continue with the same trend. Most governments are considering various alternatives to meet the continuous demand. This paper presents some of the major issues and suggests various approaches such as restructuring and other cost-effective measures in order to achieve higher efficiencies in water and power sectors in the GCC states. The following list the title of the topics discussed in this paper: (1) privatization and independent authority approach to water and power utilities, (2) water and electricity system integration, (3) interconnection of the GCC states systems, including electrical and natural gas systems interconnection, (4) demand side management including tariffs and conservation, (5) technology and (6) training. The results of these measures, if implemented, will be to relieve the government budget and reduce the high subsidy cost.