Water has definately been deliberately cut off as a politcal tool.
This summer, like previous summers, Palestinian residents of the West Bank have been suffering from a severe water shortage. As a result, they are unable to meet certain basic needs, such as maintaining personal hygiene, house cleaning, and watering their animals, gardens, and crops, which provide a source of food and livelihood for many Palestinian households.
Unfair Division of Water Resources
The root of the water shortage in the West Bank lies in the completely unfair division of the water resources. Under international law, the local water resources shared by Israel and the Palestinians must be divided fairly according to need. In practice, Israel allows the Palestinians only twenty percent of the water from the Mountain Aquifer – the groundwater system that transects the border between Israel and the West Bank – and does not enable Palestinians access to the water from the Jordan River basin (the second shared water source), which includes the Sea of Galilee, the streams flowing into the Sea of Galilee, and the Yarmuh River.
This unfair division has created a chronic water shortage for the Palestinians. The magnitude of the shortage is clearly seen in the vast gap between Israeli and Palestinian per capita home, urban, and industrial water consumption. Whereas the average Palestinian on the West Bank consumes about sixty liters a day, the average Israeli consumes about 350.
Communities Lacking a Water Network
The water shortage is particularly felt in West Bank communities that are not connected to a water network. As of the summer of 2002, more than 200,000 Palestinians were living in more than 200 communities that do not have a water network. These Palestinians rely mostly on rainfall, which is collected on roofs of the houses and in nearby cisterns. This water source is generally sufficient for only a few months (November to May). During the summer, they collect water from nearby springs (where they exist), using plastic bottles and jerricans, and buy water at high prices from private water tankers. The water they obtain in these ways is poor quality, which affects their health Since the beginning of the current intifada, water supplied by the tankers has fallen sharply. The decline is a result of the various IDF restrictions on Palestinian m........
http://www.btselem.org/English/Special/020801_Water.asp