This paper displays and analyses the sustainability dimensions of a practical experience of Palestinians in Palestinian Authority Territories after 1994 in the context of Integrated Water Resources Management (IWRM) paradigm. These dimensions are environmental, economic, social and institutional. The experiences displayed would be represented in the integrated watershed management of Al-Fara'a Valley Watershed. This experience would reflect the cons and pros of IWRM, and how the political dimension predominates other dimensions at the local and regional levels. In addition, the institutional challenge and the reduced solution space are highlighted as major constraints that lead to the absence of enabling environment for policy implementation. In the context of the social dimension of IWRM, the urgent need and necessity to engage other social actors to strengthen the current architecture of institutions and networks is analyzed. This analysis would help in making IWRM more operational, since policies were written and new institutional arrangement were laid out but the main stakeholders have not yet understood their role due to the lack of effective and constructive engagement of those stakeholders.