The paper discusses the contradictory evolution of water services and the politicised nature of water scarcity in Lima, the capital of Peru. It initially claims that water scarcity cannot be understood as an isolated phenomenon, but it is inserted in a wider multiplicity of scarcities that characterise contemporary urban development. The naturalisation of scarcity in the official policy discourse is then criticised for its tendency to overlook interconnected mechanisms of political differentiation and socioeconomic exploitation that influence the allocation and use of water. Against such reductionist readings, the analysis employs a non-essentialist interpretation of multiple scarcities related to water and emphasises the need to address the totality of the experience of scarcity. Based on qualitative fieldwork, which explored recent institutional reforms and the daily struggle for water in the periphery of Lima, three fundamental reasons were identified for the persistence of water scarcity: first, the expansion of water problems as a result of the poor quality of housing and the discriminatory practices against low-income residents; second, the modest improvements in water services provided by public investment programmes, which have primarily aimed to answer political and electoral demands of the ruling party; and third, the technocratic basis of new management approaches and the systematic exclusion of grassroots communities from the decision-making process. Genuine responses to the mounting water problems of Lima require a more critical appreciation of the production of circumstantial abundances and totalising scarcities in the city.