The water crisis in Iran, resulting from chronic supply-demand imbalances, groundwater depletion, high network losses, and inappropriate consumption patterns, has evolved into a national issue, with projections indicating an intensification of physical water scarcity by 2025. Focusing on reducing water loss and water recycling, this report examines four policy axes: the combination of economic and non-price instruments to reduce waste, the redesign of urban water pricing based on real costs and demand considerations, the role of the circular economy in utilizing wastewater and sewage, and the standing of water accounting in national decision-making. Findings indicate that sole reliance on command-and-control policies and supply-based pricing lacks necessary efficacy; successful policy requires a combination of increasing block tariffs, behavioral economics instruments (nudges and smart information), support for water-saving technologies, and the deployment of smart meters. Furthermore, the circular economy, through the treatment and reuse of wastewater, can alleviate pressure on freshwater resources and create new economic opportunities. Finally, the establishment of an integrated water accounting system featuring hydrological, economic, and environmental data is proposed as a prerequisite for integrated governance and the monitoring of policy effectiveness.