Population growth, economic development and agricultural development have continued to increase in Egypt's water demand. This has severely increased the stress factor on Egyptian policy makers. Sudden governmental moves, such as banning new export licenses for rice crops and making public statements that Egypt will not have enough water by the year 2017, have triggered the topic of Nile water scarcity in Egypt, an issue that was never made public before. However, no research to date has attempted to recalculate at least some of the data that has been publicly available, and summarizes the agricultural water needs just from Nile water. As agriculture is by far the largest water- consuming sector in Egypt, this study will attempt to compute the water consumption of each crop grown in Egypt. Along with data available from other sectors, it will try to predict whether or not there will be a scarcity situation by 2017. The study will also consider the political side of the scarcity issue that can no longer be ignored, and that now must be taken into consideration. Finally, the study will present some options toward a conflict resolution.