Kosovo is a small and young state that gained an interim United Nations (UN)-administered status in the wake of the Dayton peace accord only in 1999; it declared independence in 2008. Compared to neighboring countries, it is still lacking in its basic infrastructure and its administrative and technical skills. In addition, with the onset of the War in Yugoslavia in 1992 most investment and normal maintenance came to a standstill. Much of the publicly owned infrastructure fell into disrepair or was vandalized, but private investments led to a construction boom which, however, is leading to many environmental problems. The government is committed to reconstruction and to the development of a peaceful state. It also intends to align with EU policies. Thus, the study has the specific objectives to: (i) assist the government to improve its river basin planning and management by providing (for demonstration purposes) a replicable tool and simulation model for integrated river basin planning and management; and (ii) support the government in its identification of priority measures of structural and non-structural nature to help strengthen the water resources sector performance. The source(s) for the financing of the identified projects will need to be identified further by the Government as the World Bank has not committed to involvement in the sector.