The water situation in arid environments is fragile because of climate change, population growth, economic development, irrational behavior in consumption patterns, and water pollution, which in their entirety threaten water security for such environments. The Water Evaluation and Planning (WEAP) (a planning software) was used to assess the actual (2000–2023) water supply sustainability with realistic annual growth rates to project (2024–2035) water demands for Kuwait's water future. The actual total water supply was found to be 1,375 Mm3/yr, of which 44% was for domestic, 5% for industrial, and 51% for agricultural water uses. It was also found that the per capita consumption for domestic and industrial purposes was 214 m3/yr. Suitable growth rates were as follows: 2, 1.5, and 1% for domestic, industrial, and agricultural sectors, respectively. This will result in water shortage of 235 Mm3/yr during the period 2024–2035. Kuwait is called to implement strategic solutions to fully reuse treated wastewater and the virtual water concept for agricultural development purposes. This study demonstrates that when Kuwait implements these solutions, it can reduce CO2 emissions by 1.175 million tons saving $573 million annually. With the proper measures and policies, Kuwait can reduce their bulk water demand by 235 million cubic meters saving $1.15 billion dollars per year.