Abstract: Transboundary water resources need the cooperation of national governments in the development of policies and strategies for development. A holistic approach on sustainable development with an emphasis on protection of the water basin for the continued use o the resources for all partners is ideal but often hard to achieve. Despite this, there have been 295 water agreements made over the world compared to 327 conflicts. As climate change and anthropogenic activities continues to hold ground as major aspects in water resource management, sustainability is key in ensuring development, peace and adaptation reign. Focusing on the Omo River basin, a DPSIR with qualitative analysis was done on policies and strategies that are will come into effect and are already in place to establish their social, cultural, economic and environmental effects. Based on the current trend, the main focus of both governments seems to be on economic development with an avoidance of any possible negative effects of energy, agricultural and industrial projects.