This paper investigates the relationship between industrial water withdrawal (IWW) and income in selected world countries. The issue is addressed by means of a smooth transition regression (STR) model on cross section data of 132 countries in 2006. The results confirm the nonlinearity of the link between IWW and income. According to the results, the income elasticity of IWW is a bell-shaped curve. Therefore, the policies and management processes in water sector including water allocation between activities and reigns should take into account the development degree and also focus on income level, water scarcity and the economic, social and ecological structure in each country.
