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Abstract Scarce and unreliable urban water supply in many countries has caused municipal users to rely on transfers from rural wells via unregulated markets. Assessments of this pervasive water re-allocation institution and its impacts on aquifers, consumer equity and affordability are lacking. We present a rigorous coupled human–natural system analysis of rural-to-urban tanker water market supply and demand in Jordan, a quintessential example of a nation relying heavily on such markets, fed by predominantly illegal water abstractions. Employing a shadow-economic approach validated using multiple data types, we estimate that unregulated water sales exceed government licences 10.7-fold, equalling 27% of the groundwater abstracted above sustainable yields. These markets supply 15% of all drinking water at high prices, account for 52% of all urban water revenue and constrain the public supply system’s ability to recover costs. We project that household reliance on tanker water will grow 2.6-fold by 2050 under population growth and climate change. Our analysis suggests that improving the efficiency and equity of public water supply is needed to ensure water security while avoiding uncontrolled groundwater depletion by growing tanker markets. 

Abstract Scarce and unreliable urban water supply in many countries has caused municipal users to rely on transfers from rural wells via unregulated markets. Assessments of this pervasive water re-allocation institution and its impacts on aquifers, consumer equity and affordability are lacking. We present a rigorous coupled human–natural system analysis of rural-to-urban tanker water market supply and demand in Jordan, a quintessential example of a nation relying heavily on such markets, fed by predominantly illegal water abstractions. Employing a shadow-economic approach validated using multiple data types, we estimate that unregulated water sales exceed government licences 10.7-fold, equalling 27% of the groundwater abstracted above sustainable yields. These markets supply 15% of all drinking water at high prices, account for 52% of all urban water revenue and constrain the public supply system’s ability to recover costs. We project that household reliance on tanker water will grow 2.6-fold by 2050 under population growth and climate change. Our analysis suggests that improving the efficiency and equity of public water supply is needed to ensure water security while avoiding uncontrolled groundwater depletion by growing tanker markets. 

Limited water availability, population growth, and climate change have resulted in freshwater crises in many countries. Jordan’s situation is emblematic, compounded by conflict-induced population shocks. Integrating knowledge across hydrology, climatology, agriculture, political science, geography, and economics, we present the Jordan Water Model, a nationwide coupled human–natural-engineered systems model that is used to evaluate Jordan’s freshwater security under climate and socioeconomic changes. The complex systems model simulates the trajectory of Jordan’s water system, representing dynamic interactions between a hierarchy of actors and the natural and engineered water environment. A multiagent modeling approach enables the quantification of impacts at the level of thousands of representative agents across sectors, allowing for the evaluation of both systemwide and distributional outcomes translated into a suite of water-security metrics (vulnerability, equity, shortage duration, and economic well-being). Model results indicate severe, potentially destabilizing, declines in freshwater security. Per capita water availability decreases by approximately 50% by the end of the century. Without intervening measures, >90% of the low-income household population experiences critical insecurity by the end of the century, receiving <40 L per capita per day. Widening disparity in freshwater use, lengthening shortage durations, and declining economic welfare are prevalent across narratives. To gain a foothold on its freshwater future, Jordan must enact a sweeping portfolio of ambitious interventions that include large-scale desalinization and comprehensive water sector reform, with model results revealing exponential improvements in water security through the coordination of supply- and demand-side measures.