The 21st century is the century of City and Urbanization. As urban communities spread and populations grow, the impact on the natural environment escalates. The hydrological cycle is among the environmental aspects most impacted by urbanization. Consequently, this study suggests a “Water Sensitive Urban Design Tool" that comprises three dimensions: (i) determining the specific issues facing residential water demand; (ii) identifying the factors influencing these issues; and (iii) the relevant water sustainability objectives and criteria. The WSUD tool could be utilized by urban designers and planners to assess the water performance of residential urban areas. It could be employed to evaluate current conditions, suggested retrofitting options, or Greenfield developments. Thus, the tool not only measures the water sensitivity of residential areas but could also support decision-making and guide development. To evaluate the suggested WSUD tool and examine its suitability to the Egyptian context, particularly the residential sector, a survey was conducted with water-related experts and design specialists. Based on the survey a finalized version of the WSUD Tool was formalized.