This paper describes the State of Ceara's, Brazil, water supply problems (drought, water demand, population growth, water quality, etc.) and describes the statewide integrated water resource management project. This program incorporates the institutional, legal and technical resources in the state to create a successful water resources management program. The basin management plans include water storage for periods of drought, a reallocation system, environmental inventories and assessments, and public education and information. If the State follows through with this program to completion, it will represent a model effort that will undoubtedly be used by other states within Brazil in their effort to manage this valuable resource in an effective and efficient manner. This effort has been strongly supported and financed through the World Bank and this institution will continue to provide technical guidance to the process.