Mongolia is currently suffering from shortage of water resources due to a little precipitation. At present, water resources are mainly obtained from the ground water and used mainly for the human consumption and agricultural activities.

Under this situation, water resources available for the development of mining and industrial activities are far from sufficient, although it is reported that in the South Gobi Region detected are a vast amount of mineral resources such as gold, coal and copper, and both public and private sectors, domestic or foreign, are interested to explore these resources.

The study researched several alternatives to solve this problem and made recommendations that include amending the water usage legislation, strengthening capacity development for water supply technologies, environmental measures and water usage management, as well as seeking for involvement of the private sector.