Currently, 166 million people in 18 countries are affected by water scarcity and another 270 million people in 11 countries are "water stressed". It is predicted that by 2025, the number of people affected will increase to approximately three billion or about 40 percent of the world"s population. This problem is now considered so severe that it requires a strategic approach that emphasizes equitable and sustainable management of water resources. This report evaluates the World Bank" implementation experience of the 1993 Water Resources Management Policy (Operational Policy 4.07) to determine the relevance and effectiveness of the World Bank"s overall water operations for its borrowers. It assesses the extent to which the issues identified in the guideline document Water Resources Management-A World Bank Policy Paper (1993) have been implemented by World Bank Operations. This report also makes recommendations for improving World Bank policy and strategy in the water sector.