This paper's objective is to examine the Palestinian arguments against Israel by presenting detailed information about water supply systems presently serving Israelis and Palestinians. This data, previously classified due to political sensitivities, was recently released for publication by the Israeli Water Authority for the first time after the signing of the Israeli-Palestinian Interim Agreement (Oslo II) over 15 years ago. It is presented in this study, which makes use of new maps, tables and graphs. The data shows that most of the Palestinians' arguments have no foundation. Moreover, contrary to most of these arguments, Israel has fulfilled all of its obligations according to the signed water agreements with the Palestinian Authority (PA). In fact, the issue of water scarcity could be changed from a source of controversy and tension to one of understanding and cooperation if both sides are prepared to start planning future water supply plants together. Israeli-Palestinian cooperation based on academic research is a good starting point. Cooperation based on sustainable development and advanced technologies can solve the real water deficiency. This paper presents practical plans to efficiently overcome the water shortages of both sides.