Saudi Arabia is the third-largest per capita water user worldwide and has addressed the disparity between its renewable water resources and domestic demand primarily through desalination and the abstraction of non-renewable groundwater. This study evaluates the potential costs of this approach in the industrial and municipal sectors, exploring economic, energy, and environmental costs (including CO2 emissions and possible coastal impacts). Although the energy intensity of desalination is a global concern, it is particularly urgent to rethink water supply options in Saudi Arabia because the entirety of its natural gas production is consumed domestically, primarily in petrochemical and desalination plants.