Namibia is the driest country in sub-Saharan Africa and has been projected to reach an overall water deficit by 2020. Southern Namibia is especiafly arid, and appropriate and holistic management of water resources is thus becoming increasingly essential. Water demand management (WDM) is a potential component of sustainable, integrated water resource management in southern Namibia. WDM is a multi-faceted concept that aims to reduce water consumption by directly influencing user demand for water, thereby providing an alternative to costly supply-side Management. A contextual review of WDM, including its current application in Namibia, focuses on recent developments regarding policy formulation, legislation and institutional arrangements. Keywords: Namibia, natural resource management, water demand management, water resource, water supply, ground water, surface water, water shortage, freshwater supply.