The world is facing a serious water crisis. We are using water faster than nature can replenish it, leading to what experts call “water bankruptcy.” This situation is getting worse due to climate change, population growth, and increasing technology use that raises water demands. In many places, we may have passed the point of no return.
So, what exactly is water bankruptcy? Basically, it means we’re depleting our water sources quicker than they can be refilled. A United Nations report states that in numerous areas, long-term use has surpassed safe limits. Rivers, lakes, and wetlands are often damaged beyond recovery.
Like financial bankruptcy, water bankruptcy unfolds slowly. We might take a bit more water during dry periods, use deeper wells, or reroute rivers to support agriculture and cities. Kaveh Madani, an expert from the UN University, notes that as the situation worsens, lakes shrink, rivers dry up, and even the ground can begin to sink. Some cities are running into scenarios called “Day Zero,” where there isn’t enough water for everyone.
Previously, terms like “water stress” or “water crisis” were used, hinting at temporary issues. But as Madani explains, using the term “bankruptcy” suggests a more serious, ongoing problem. While we can still take steps to improve the situation, we must also adapt to stricter conditions.
Currently, over two billion people lack access to safe drinking water, and half the world’s population experiences severe shortages at least part of the year, according to the UN. A significant culprit is agriculture, which is a major water consumer. Surprisingly, efforts to use water more efficiently can backfire. For instance, methods like drip irrigation can lead to even more water use, as they allow plants to absorb water gradually.
Climate change makes this issue harder. It leads to less rainfall, increases crop water needs, and melts glaciers that hold fresh water. Regions like the Middle East, North Africa, South Asia, and the U.S. Southwest are particularly vulnerable.
Additionally, many areas that receive enough rain still face problems. Water can be polluted by industry or overused by data centers. These facilities can use up to 5 million gallons of water daily, equal to the needs of a small town, according to the Environmental and Energy Study Institute.
Despite the grim outlook, some see water bankruptcy as a chance to unite. The UN report suggests that it could foster cooperation to tackle significant global issues related to security, sustainability, and development.

