ABSTRACT
This chapter examines the relative returns to water of agriculture and industry in economic and livelihood terms. It describes the socio-economic impacts of the water scarcity and pollution problems particularly in the urban area. The chapter demonstrates that the adaptive capacity of households and water-related businesses to the scarcity in context of equity. Yemen is one of the few places on earth where rainwater harvesting and runoff agriculture has been practised continuously since earliest settlement. The development of industry in Yemen has been steady and the sector is approaching the share of Gross Domestic Product enjoyed by agriculture. The main water related problems noted by the companies were inadequate water quality for the industrial processes involved, high levels of Total Dissolved Solids and hardness leading to scale problems in the cooling systems. Access to water for domestic use in Yemen provides great contrasts, between urban and rural water access, and forms part of the distinction between urban and rural environments.
