The North African countries are experiencing severe water shortages that increase with time. Surface water supplies are insufficient to meet the escalating water demands.Nonconventional water resources, such as desalination andwater reuse, are technically difficult and economically expensive to develop. The need to provide for the expanding populations of the region and their socioeconomic development has led to increasing dependence on groundwater resources of a limited recharge. The huge and extensive North African aquifer system offers an alternative water resource to alleviate present shortages, at least for the foreseeable future. Large parts of this system, however, are shared by more than two countries and are presently under intensive exploitation. The regional socioeconomic and environmental impacts of in-situ utilization and large scale mass water transfer projects have been assessed. It is concluded that the sustainability of this precious nonrenewable rsource depends on the peaceful cooperation among the countries involved. Several issues related to exploiting shared nonrenewable groundwater resources must be tackled in a mutual cooperative spirit. They include problems of common pool resources, hydrogeological uncertainties and a paradigm shift from the fragmentary conception of separately isolated aquifer subsystems to a holistic (mega-watershed) approach covering the whole region. Certain strategic and managerial guidelines must be formulated. Alternative water saving socioeconomic develoment models must be considered. Regional economic integration should be encouraged. Failure to realize these objectives may lead to enhanced competition and speeds up the depletion and deterioration of this valuable resource. The ensuing economic problems can create situations conducive to sociopolitical strife and may trigger conflicts that will potentially endanger the peace and stability of the whole region.