Water resources policy analysis deals with the protection of people from th
e harmful effects of water and assurance of a consistent, adequate supply o
f usable water. Population and regulatory pressures, political and economic
instabilities, and climatic variations can all be expected to further stre
ss water supply resources. Developing policy for managing water systems for
human needs in such an environment is difficult, slow, and very costly. Th
e approach to water resources policy analysis developed in this paper is th
at of the rational decision maker who lays out goals and uses logical proce
sses to explore the best way to reach those goals. The decision maker may b
e an individual or a group. The emphasis in this paper is on how water reso
urces decisions ought to be analyzed and made. In establishing this framewo
rk we are proposing integration of object-oriented modeling approach with s
ystems analysis. Our concern here is with how the water policy analysis pro
cess should be structured to best address a policy choice, and with the obj
ect-oriented model that will aid understanding and prediction. The proposed
approach is illustrated in the paper by the case study of water resources
policy analysis for Egypt.