The Audit Office of Cyprus revealed critical flaws in managing water resources amid climate change and worsening scarcity. The report stressed that the Water Development Department (DWD) must act immediately to protect the country’s supplies and prevent long-term shortages.
Weak Oversight and Billing Failures
Auditors found major gaps in metering, billing, and record-keeping. Inspectors noted two key intake points, covering 64% of Nicosia’s water, lacked regular checks. The DWD could not access Limassol meters or Larnaca’s telemetry system, creating uncertainty over billed quantities. Officials observed unexplained meter discrepancies but failed to investigate. The Water Billing System also lacked proper data security and access control.
Financial Risks and Unchecked Consumption
The DWD collected €147.7 million, including €69.2 million in overdue Local Authority payments, but new debts continued accumulating. Authorities supplied €58.1 million in water to Turkish Cypriot consumers without invoicing due to political decisions. The audit found slow legal action, unchecked over-pumping by private companies, and businesses consuming water without charges. Water adequacy projects in Polis Chrysochous and Tilleria stalled despite a 2022 feasibility study.
Urgent Reforms Needed
The Audit Office called for stronger supervision, better organization, and effective resource use. Authorities must implement robust controls, speed up decisions, and develop a long-term strategy to ensure sustainable water management in Cyprus.

