Water in Jordan is the single most critical natural resources, since most of all aspects of social, economical and political development depends on the availability of adequate water supply. Jordan is one of the most water scare countries of the world where the per capita share of water is about 175 cubic meter per year. Nowadays, demand is far exceeding the supply and the trend in continuing. One of the main options to control this deficit is by reducing water allocated for agriculture. This paper discusses the impact of water pricing policy as a tool in controlling and reducing agricultural water demand.