The sustainable management of the water resources poses a great challenge. However, if this is managed with efficiency and balance, the water can have a key role in the social well-being, economic prosperity as well as healthy eco-systems. Managing the “water balance” is the grounds for establishing the policy of effective water management.

Just like in other parts of Europe, in the Republic of North Macedonia, the disbalance between the supply and demand of water, implies that analyzing the condition of the water sector on local and national level should be a priority. As the water services are regulated, and there is a decreased intensity of reform activities in the sector, the lack of updated structured data and overview of the water sector calls for this Analysis. The Analysis gives insight into the condition of the water services sector, and it is a significant source of data for all stakeholders in the sector as it gives directions and recommendations for adapting the existing measures or creating new ones for the sector.