Algeria suffers significant lack of fresh water since most of its territory is classified as and and semiarid zones. 90% of the population is concentrated on the northern coastal region which represents 10% of the countries area and situated in a more temperate Mediterranean climate. Many factors intervene in the fresh water crisis availability (growing demand, drought, pollution, etc), the water strategy was depending mainly on rainfall, the use of seawater desalination was confined to industrial needs only (mostly hydrocarbon oils). The state water policy managed by governmental institutions and agencies was based on the construction of dams for rainwater collect. The use of seawater desalination for domestic use started sprouting in early 80's with the increasing drought phenomenon. But actually, the resort to desalination for domestic use has become inevitable. Consequently, the government has put into action an emergency program for the installation of several small seawater desalination units along the coast, in addition to others much important projects. This crisis has come at the time of very important economical changes; these are taking place in the frame of the passage from an entire state managed economy to a market based economy. So new strategies dealing with major issues are being implemented, the governmental institutions are restructured to be managed in market based way. The water market is now open to both national and international private sector.