Sana'a, the ancient capital of Yemen, is on course to become the first major world city to 'fail' through lack of water. The city depends or its supply on groundwater, but this is now so overexploited that the resource may become exhausted by 2019. Past studies, both local and international, have thrown up numerous possible solutions. However, the Government of Yemen (GoY) - under-resourced, ill-advised, and now roiled by revolution - has so far failed to devise an effective remedial strategy, despite a demonstrably close correlation in Yemen between water scarcity and serious political turmoil. This paper considers both the causes and the likely effects of Sana'a's groundwater crisis; the latter include the possible collapse of Yemen as a state, with far-reaching economic and security consequences for the region and the world. The paper goes on to examine possible solutions, with particular emphasis on addressing the nation's addiction to the semi-narcotic chewing leaf, qat, a notoriously thirsty plant to cultivate. A local community initiative, in Haraz in the western highlands. shows that it is possible to break the qat habit in Yemen. As it pushes for "top down" sectoral reform, the International Community should not overlook the importance of such "bottom up" initiatives. The full range of water management policy options available to the GoY are considered, from the construction of check dams and irrigation controls to the compulsory purchase of private wells and urban infrastructure renewal. The paper concludes, alongside a recent study by the World Bank, that the GoY should adopt a combination of strategies, based on the phased importation of water from aquifers around the Sana'a basin. It further argues that the International Community must start to speak with one voice on Yemen's water crisis, and do more to persuade the GoY to make tackling this its priority.