This paper presents analysis of water resources availability and water uses in Egypt. More focus will be given to agricultural water use and productivity since agriculture sector represents the major water-consuming sector in Egypt. Nile River is the major source of water where rainfall is rare and groundwater is limited. The nature of the irrigation network and system of the Nile river is rather unique. Water lost from one point is usually used in the downstream, and hence the global water use efficiency is relatively high. Moreover, there is a multiple system for water use in Egypt. Water is used for agriculture, municipal and industry, navigation, hydropower generation, and fisheries. Emphasis in this paper is given to agriculture water use and productivity. Agriculture sector consumes about 85% of the total available water. There are several applied policies for improving water use efficiency. Irrigation Improvement project is currently implemented to enhance water distribution and minimize water losses through physical and institutional measures. Participatory approach is also being implemented in water management followed by modification of laws and institutional reform. Future water policies include introducing integrated water management approach to increase water use efficiency and maximize water productivity. The paper presents the productivity of the main crops in Egypt and water crop productivity compared to some international figures. The results show that crops have a relatively high productivity particularly rice crop which has the highest productivity over the world.