In 2005, as part of Israel's disengagement from Gaza, water supply systems that had served
the Israeli communities, including 25 wells, storage reservoirs and a well-developed
transmission system, were also transferred to the Palestinians. At the end of the process, all
3water supply and sewerage systems in the Gaza Strip were under exclusive Palestinian control.

The period of the Interim Agreement was originally determined as five years from the signing
of the agreement. However, the two sides have continued to operate according to this Interim
Agreement since the time of its signing to the present, even though more than 13 years have
elapsed since the agreement was signed. Israel has responded to the needs of the Palestinians
and has increased the quantity of water provided to them far beyond that specified in the
Interim Agreement.
Israel offered the Palestinians the possibility of erecting a seawater desalination plant in the
Hadera area, which would be constructed and operated for them by the donor countries, and
which would supply water directly to areas in the West Bank. In addition, Israel proposed to
the Palestinians the purchase of water for the Gaza Strip directly from the desalination plant
at Ashkelon. The Palestinians are well aware of the need to develop a new major source of
water (desalination), but are nevertheless not in a hurry to take steps in this direction.

As regards Gaza, it was agreed to transfer to the Gaza Strip an additional 5 MCM/yr from
Israel's national system (at a price equal to the cost of desalinated water plus transport). The
supply pipeline for this purpose was laid by Israel up to the border with the Gaza Strip. The
connection inside the Gaza Strip has not yet been constructed by the Palestinians.

In the Gaza Strip, where the Palestinians are in full control, over 3,000 unapproved wells
were drilled immediately following Israel's withdrawal, causing a severe drop in water levels
and seriously harming the quality of water in the Gaza Aquifer and the general Gaza water
economy. This situation is ongoing and is even intensifying (there are many more
unapproved than approved wells). The total damage caused is clear and is difficult to reverse.
The phenomenon in Gaza has not been stopped and the only ones affected are the Gaza
residents (although it may be reasonably assumed that without proper supervision and
enforcement, even the Mountain Aquifer will eventually be severely affected).

As regards Gaza, it should be noted that the Gaza Aquifer has no impact on Israel and Israel
does not prevent the flow of surface water or groundwater to the Gaza Aquifer. Clearly, the
source of any additional water to the Gaza Strip must be desalination of seawater. General
plans have been prepared (by donor countries, USAID) for seawater desalination, and their
implementation can provide a separate, general solution for the population of the Gaza Strip.