The report summarizes a five-year project, conducted at the Neaman Institute by a team of researchers and practitioners in the water sector, for creating and implementing a methodology for generating a water policy for Israel. The report presents the methodology for identifying objectives, goals and indicators of achievement and for multi-objective evaluation of alternative policies. It defines the Israeli water sector, the domains of policy and their components, and lists alternatives for each component. The methodology provides guidance for generating policies in each domain and subsequently for identifying and evaluating alternative policies for the entire Israeli water sector.