Water resources occupy an important role in the bilateral negotiations of the Middle East peace process. This paper mentions the conflicting water plans for the utilization of the Jordan basin by Arabs and Israelis, and describes the issues that are to be handled in the process of peacemaking. It defines the water issues between Israel and each of its neighboring entities: Jordan, the Palestinians, Syria and Lebanon, and reviews what has been addressed in the peace negotiations thus far. A more detailed review is made of the negotiation tracks where progress was made, and a less detailed review is made of the negotiations that settled the water dispute between Jordan and Israel. The paper alludes to the claims of water wars in the region and provides evidence that water has not been a catalyst for war in the Middle East. It also proposes some topics for research that can be of interest to alleviate water shortage.