One of the most important issues facing the Iranian government system in general and governments in particular after the 1979 revolution has been and is the issue of water resources management and policy making appropriate to the water situation. However, this management and policy making have always faced numerous challenges. The present study examines the macro-policy making framework and institutional structure of water resources management in Iran after the Islamic Revolution. In this regard, the main research question is: What are the key weaknesses and challenges in the water management policy structure in Iran and how do they affect governance and resource allocation in the water basin? In this study, the qualitative analysis method has been used through a review of documents and previous sources and a review of existing research. The overall objective of this study is to assess the effectiveness of the macro-policy structure and institutional arrangements, with the hypothesis that the shortcomings, inefficiencies, and promotion of unsustainable water resource consumption patterns are rooted in the macro-policy framework and institutional framework of water resources management in Iran. The findings indicate that a major part of the inefficiency of Iran’s water management policy and challenges in this area stems from several key factors, including a limited focus on supply-side solutions, weak decision-making processes, and organizational challenges.