The Palestinian Water Authority was established by Presidential Decree No. 90 of 1995, Article 1 of which stipulates the formation of the Water Authority. Water Law No. 2 of 1996 stipulates the establishment of the Water Authority, which has an independent legal personality. Its own budget, to follow the president, and have a president appointed by a decision of the Palestinian president.

The Water Authority aims to achieve the integrated and sustainable management of limited water resources and to protect and preserve them within regulatory tools that help them to achieve a healthy environment by ensuring a balance between the quantity and quality of available water and the need of the Palestinian people to achieve sustainable development through water resources.

Water Law No. 3 of 2002, which defines the framework and levels of the water sector in Palestine, aims to regulate the sector and access the service to the appropriate level on the one hand, and to protect water resources on the other hand. The tasks and powers of the sector management were divided into three levels Organizational level, operational level and political level.

Water Law No. (3) of 2002 authorizes the Palestinian Water Authority to manage the water sector, and assigns it to regulate the sector and defines the relations of this authority with the relevant authorities from the official and civil institutions and local government authorities according to their specialization and legal references .

The decision of Law No. 14 of 2014 concerning water has been clarified. This law clarifies the powers assigned to the Water Authority and the reduction of the intersection of powers, which aims to manage and develop the water sources in Palestine, increase its capacity and improve its quality and protect it from pollution and depletion. While implementing the principles of integrated and sustainable management of water resources.

In line with the new law, the letter of the Palestinian Water Authority has been reformulated and defined its vision, goals and strategic objectives in line with the new tasks and powers .