This note aims at describing the most challenging issues that face water and sanitation sector in West Bank and Gaza (WB&G) and highlighting the possible actions that can improve Palestinian water security. The WB&G Water Supply, Sanitation and Poverty Diagnostic (June 6, 2018) study that has been done by the World Bank, which this note depends on its analysis, concluded that WB&G is a water-scarce lower-middle-income territory with a relatively water-dependent economy and is vulnerable within its geopolitical setting; thus, assuring water security is a priority. Water security requires adequate water resources that are well managed, including management of risks, and water service providers (SPs) that provide sustainable, efficient, and equitable services. The goal of water security has been receding in recent years. Therefore, to improve water security, the sector note recommended two pathways; (a) efficient use of natural and financial resources, (b) collaborative solutions within the region and the Palestinians to improve access to water supply and protect resources, and four pillars; (i) addressing water supply and demand gap, (ii) strengthening the water sector institutions, (iii) enhancing the financial viability and sustainability; (iv) attracting other development partners, including strong cooperation and coordination with Israel.