This thesis seeks to explore the potential role of cooperation over water resources between Israel, Jordan and Palestine in facilitating the peacemaking process in the region. This was done by conducting an analysis of the Good Water Neighbors (GWN) project, an initiative launched by Friends of the Earth Middle East (FoEME) in 2001 to raise awareness of the shared water problems that exist between the three conflicting parties. The primary data for this research was obtained through interviews with three FoEME’s employees, who are involved in the GWN initiative in Israel, Jordan and Palestine. It was concluded that while water cooperation at the NGO level can serve as a starting point for dialogue, it does not generate enough spillover into a wider political peace process in the Middle East at the moment. However, water cooperation at the NGO level has a bigger chance to contribute to peacemaking in the long term by gradually replacing politically defined and historically distrustful identities with a concept of a common environmental community, provided that development of shared perceptions and experiences through the means of the GWN project continues to be fostered. By significantly reducing the animosity and hostility, which have been mutually reinforced by the conflicting parties, the formation of the common identity through water cooperation would give stable ground to the traditional diplomacy, engaged in the region, to be able to continue the peacemaking efforts through conventional means of dialogue, mediation and negotiations in a more efficient and effective way. The success of the transition of the joint water management from simple cooperation at the NGO level to the peacemaking tool largely depends on whether the people in the region choose to harness the positive effects from water cooperation for the peace process in the Middle East.