Since the UN Water Conference in 1977, international debates have centered on global water scarcity and achieving sustainable development. In 1995, Morocco introduced a water policy to strengthen the country’s socio-economic development through irrigated agriculture, while ensuring the long-term sustainability of water resources through integrated water resource management (IWRM). Empirical research, however, reveals decreasing groundwater levels and increasing inequalities around water access. The purpose of this article is to shed light on the challenges this policy provokes for achieving sustainable development, the limitations it faces to implement IWRM, and provide insights on how the policy is linked to the increased pressure on water resources as reported in the literature. We conducted a content analysis of ten key water policy documents and thirty-seven in-depth semi-structured interviews undertaken between 2020 and 2021 with governmental actors and inhabitants of the Middle Draa Valley (south Morocco). We found that sustainability and social-inequality problems unintendedly triggered by the policy were linked to three factors: the use of a disciplinary approach for policy formulation and its limitations to encompass the complexity of the water-related problems, the compartmentalization of government sectors hindering the development of sound solutions to water-related problems, and the neglect of social, economic, and political factors affecting actual access to water.