Climate change, increase in population size, and the rising standard of living, have put extensive pressure on natural water sources. The State of Israel, located in a semi- arid region, suffers from a negative water balance which means the consumption of water is higher than the supply. In order to close this gap between supply and demand for water, many different solutionshave been examined. This work presents the water economy in Israel, the main possible solutionsto the water shortage, and focuses on seawater desalination as the main alternative for increasing the water supply. A qualitative analysis was performed on the different benefits and limitations of seawater desalination, using reliable and scientific data. The conclusion drawn from this research is that seawater desalination is the most `sustainable solution for the water shortage in Israel, offering an unlimited amount of water for the entire population. Nevertheless, some issuesneed to be taken into consideration if the option of seawater desalination is chosen. The location of the desalination plant should not harm any population centers, and occupation of available seashores should be avoided as much as possible, giving priority to industrial zones as the preferred locations. In addition, a proper long-term monitoring of the salt and chemicals discharged back into the sea in the desalination process must take place, identifyingany potential damages to marine- life and seawater quality.