An analytical review of physical blue and green water scarcity in terms of agricultural use, and its amenability to economic interpretation, is presented, employing more than 600 references. The main definitions and classifications involved and information about reserves and resources are critically analyzed, blue and green water scarcity are examined along with their interchange, while their causal connection with climate in general is analyzed along with the particular instances of Europe, Africa, Asia and the WANA region. The role of teleconnections and evaporation/moisture import-export is examined as forms of action at a distance. The human intervention scarcity driver is examined extensively in terms of land use land cover change (LULCC), as well as population increase. The discussion deals with following critical problems: green and blue water availability, inadequate accessibility, blue water loss, unevenly distributed precipitation, climate uncertainty and country level over global level precedence. The conclusion singles out, among others, problems emerging from the inter-relationship of physical variables and the difficulty to translate them into economic instrumental variables, as well as the lack of imbedding uncertainty in the underlying physical theory due to the fact that country level measurements are not methodically assumed to be the basic building block of regional and global water scarcity.