Climate change and the increasing number of competing water users have led to the overexploitation of the Pangani river basin resources. Action has been taken to establishing environmental, economic and social implications of different river flow scenarios under expected climatic conditions. This helped to prioritize the allocation of water resources to meet basic human needs and those of ecosystems. The main lesson learnt was that providing a platform for dialogue between key stakeholders and increasing knowledge about the climatic variability and future risk are essential for successful water management solutions.