Sustainable agriculture cannot be achieved without the wise stewardship of our water resources. This document summarizes what is currently known about the state of water resources in the agricultural areas of Canada. It does so by: 1. describing water resources in rural areas and the way in which they are used, 2. considering the concepts that underlie the assessment of water quality, and then examining the quality of surface water and groundwater in relation to agricultural activities, 3. discussing the major water-related ecological issues that have resulted from the co-existence of agriculture and natural ecosystems in the rural environment, 4. looking at ways in which the availability and quality of water can be optimized for the various competing users, 5. explaining ways in which excess water can be managed to improve drainage and minimize flooding, and 6. discussing the limitations that water availability and quality place on the expansion of agricultural and other development in rural areas.