Debates about water stress and water scarcity have entered public dialogue through extensive coverage in media, resulting in heightened awareness of water-related challenges at policy and political levels. Yet the notion of water stress, as it relates to resource scarcity, remains vaguely-defined among the scientific and international development communities. This chapter reviews the nature of water scarcity and how it intersects with the policy domain. To fully understand the policy ramifications of water stress, the notions of hydrological (physical) water scarcity and economic water scarcity are unpacked. This chapter builds on the argument that human, social, and economic development is closely linked to overcoming water stress. Looking to assess the global pathways for sustainably addressing water security, this chapter argues that the 2030 Agenda for Sustainable Development offers a practical framework and that effectively addressing water scarcity underpins the achievement of numerous Sustainable Development Goals (SDGs). An overview of the approaches for overcoming water stress is discussed in the context of recent international reports; this analysis explores potential scenarios for sustainable development in the future.