The Sultanate of Oman, a country in the Middle East with limited oil and water resources, is coping with the twin problems of rapid modernization and severely limited freshwater supplies by using multistage flash distillation of seawater in conjunction with electrical power generation. Limited supplies of fresh well water are blended with the desalinated water before distribution. The administration of electricity and water services in Oman, the history of Oman's water system, and sources of water for the greater Muscat area, including the Ghubrah desalination plant, the Wadi Aday (eastern well field), the western well field, and the Oman Refinery Corporation are discussed. Transmission of water from the Ghubrah complex, the Muscat distribution network, and production and consumption of water in Muscat are reviewed. Future plans for expansion of the Muscat water system are described. Includes tables, figures.