A study in 2015 found preliminary evidence that in some municipalities in the Calgary region, housing developers are facing challenges when it comes to acquiring licensed water allocations for new housing developments (Nicol & Nicol, 2015). This study explored the issue of water challenges and housing development in more depth. The study focussed on housing development in three of the most water-stressed municipalities in the Calgary region – the municipalities of Rocky View County, M.D. Foothills and the town of Okotoks, and involved personal interviews with 15 housing developers in the region. The study considered four main lines of inquiry: (a) developers’ views of water challenges; (b) the nature and source of the problem; (c) the consequence of water challenges; and (d) solutions. An additional dimension of the study involved a preliminary assessment of the potential impact a decline in housing construction could have on the real estate sector.