The South Caucasus region possesses the ramified network of ground and underground water systems. All water bodies in this region, particularly rivers and groundwater resources, are mostly transboundary. This is not only a challenge for the regional countries, but also new opportunities for cooperation. The political conflicts that occur in the region from time to time and also persistent deficit of finance are the major obstacles for strengthening the transboundary cooperation. However, the ecological situation still remains acceptable for creating the impulse for development of the transboundary water cooperation.