Even though water-scarce and mostly a desert, the State of Rajasthan is rich in traditional water wisdom that seeks to save every drop of water from the minimal rains that this State receives throughout the year. This chapter examines the water scenario of the State of Rajasthan and some of these water traditions. It analyzes the critical water issues and challenges that Rajasthan faces and recommends appropriate solutions that can go a long way to render the State water-sufficient to tap its water potential to the fullest and focus on sustainable development. This paper reviews the water policy, law and jurisprudence in the State. It calls for water sector reforms by implementing improved technologies and practices for optimal farm productivity, reviving traditional water harvesting methods, awareness building and infrastructure development through community engagement. Further, this paper views collective action bringing together the public sector, the private sector, civil society and other stakeholders to work together toward an integrated and participatory way for water resources planning and its management.