Middle East is part of the most arid region on Earth. Severe droughts and population growth have intensified water shortage problems and put further stress on this vulnerable region. Furthermore, climate change has the potential to impose additional pressure on all Middle Eastern countries. A future climate change will interact with social, economic, and political conditions of the area. Therefore, there is a potential for further social and political vulnerability at local and regional levels. In order to mitigate these threats it is important to study ways to increase the resilience against more frequent and prolonged droughts and to minimize the water stress in the region. On one hand, authorities in the area concentrate on large scale projects such as reservoirs, desalination plants, and fossil groundwater abstraction that potentially could create political tension between upstream and downstream countries. On the other hand, large projects may contribute to a national unifying. Hence, complex dynamics exist between engineering infra-structure and public perception of national authorities. In this paper we discuss influence of climate change, mitigation, and design of resilience for periods 2010-2040 in southern Iran. We discuss indigenous and economic solutions to climate change impacts on water resources at the local level and local public participation. Furthermore, we discuss how these local level solutions may affect regional and national water policy in the future.