ABSTRACT: The pressure on water resources from energy resource development and transformation is likely to be greater in the future than it has been in the past. A rational resolution of the political problems that this situation will generate requires that: 1) planning based on predictions of future energy supply and demand be replaced by scenario, or “what if?” analysis; 2) full attention be paid to the uncertainties in per‐unit‐energy water requirements; 3) suitable stochastic measures of water availability be used to compare water supply with water demand; 4) realistic ecological criteria, and other alternative use criteria, be developed for estimating impacts of water withdrawn or consurned for energy development; 5) human consequences of ecological impaccts are described in a manner that will allow the political process to intervene in an optimum manner to allocate water re