This paper aims to highlight a new direction in urban water management to build sustainable cities in Iran by increasing the adaptability and resilience of urban communities dealing with climatic variability and change and anthropocentric pressures. A new direction in urban water management: (1) should encompass a strategy for institutional strengthening may be based on an alliance of sound and open interdisciplinary research based on Earth system and sustainability sciences and socio-economic and political developmental needs; (2) to consider the impact of climate change and other drivers on cities which is multifaceted using integrated assessment approach; (3) to implement water demand management and adaptive practices to create resilient urban societies; and (4) to enhance the ethical aspects of water supply and sanitation by considering societal values and cultural element. Iran will experience a great deal of dificulty in supply water and sanitation services to an increasing urban population in future. Without good urban water and sanitation services, we can not build sustainable cities. Administrative institutions need to be adapted and respond to two main drivers for change: population growth and urbanization by (1) integrated information management system, (2) Strengthening Legal Authority, (3)involving public participation and (4) land and water policy integration. Water ethics form the basis of building sustainable cites. The ethical and cultural context should be considered in any institutional reforms