The chapter discusses the transition from 20th-century water policies, which relied heavily on large-scale infrastructure such as dams and centralized treatment plants, to a more sustainable "soft path" approach. The hard path brought significant benefits but also had substantial and often unanticipated social, economic, and environmental costs. These include displacement of people, loss of biodiversity, and environmental degradation. The world is now facing a major transition in water resource management, with a growing awareness of the need for more equitable and sustainable solutions. The soft path emphasizes community-scale systems, decentralized decision-making, water markets, efficient technology, and environmental protection. It aims to improve water productivity, ensure equitable distribution, and involve local communities in water management. The chapter highlights the economic and social benefits of water conservation and efficiency, and calls for a comprehensive approach that addresses both human and ecological needs.The chapter discusses the transition from 20th-century water policies, which relied heavily on large-scale infrastructure such as dams and centralized treatment plants, to a more sustainable "soft path" approach. The hard path brought significant benefits but also had substantial and often unanticipated social, economic, and environmental costs. These include displacement of people, loss of biodiversity, and environmental degradation. The world is now facing a major transition in water resource management, with a growing awareness of the need for more equitable and sustainable solutions. The soft path emphasizes community-scale systems, decentralized decision-making, water markets, efficient technology, and environmental protection. It aims to improve water productivity, ensure equitable distribution, and involve local communities in water management. The chapter highlights the economic and social benefits of water conservation and efficiency, and calls for a comprehensive approach that addresses both human and ecological needs.