Where empowerment and active involvement of local users and beneficiaries of water resources is a prerequisite to operate and sustain integrated water resource management (IWRM), there is also urgent need to explore how actually used water technologies can be innovated to make water resource management sustainable. This is all the more important in view of the imminent needs to adapt to processes of climate change and the erosion of ecosystems that provide the natural resource basis for use of water for agriculture. This Chapter will illustrate how such technological innovation could take place in one of the Palestinian watersheds as one outcome of a long process of social organization and participatory planning with stakeholders at both local and national levels. Hydrological flows from water run-off from the surrounding hills to recharge of aquifers from flood water form an important factor in preserving the agro-ecosystems in this very fertile but closed watershed. Good management of water resources and related ecosystems has indeed been enhanced by local water governance practice and social organization, also in view of a highly restrictive Israeli occupation measures that strongly affect access to water, compounded by possible climate change threats.