ABSTRACT The supplies of the groundwater in Bahrain are coming through three aquifers: Al- Damam aquifer, Um-Ramda aquifer and Al-newgeen aquifer. The first is the most important aquifer which provides around 75% of total supply of groundwater. The supply groundwater in Bahrain faces many challenges which give the present paper its importance. The main objectives of the paper are to study the challenges face the supply of groundwater in Bahrain, to analyze the main factors effect on the production of the groundwater, to measure the relative strength of the factor effect on underground water and to draw some policy implications and recommendations that help the policy-makers in Bahrain to take the suitable policies for managing the groundwater in the kingdom. The results state that the population was the main factor determines the groundwater output through the period 1980-2009 and the main two factors effect of the future output of the groundwater in Bahrain are population and production level of other types of water i.e. desalinated and potable water. On contrast, the results show that per capita groundwater consumption has no effect on groundwater output.