This report presents a study on developing water sustainability indicators for Abu Dhabi, UAE, an arid environment facing significant water challenges. The research, presented at the 6th Making Cities Liveable Conference, analyzes the city's water situation, including high per capita consumption, over-exploited groundwater, and reliance on desalination. The study proposes a framework of 19 indicators across four categories: water availability, quality, use efficiency, and policy & governance, using a DSR (Driving force, State, Response) approach. The methodology involves reviewing the literature, selecting relevant indicators, and defining scales for evaluation. The report highlights the need for sustainable water management strategies in Abu Dhabi, considering the region's natural constraints and increasing water demands. The report also discusses the existing water resources of the region including groundwater, treated sewage effluent, and desalination plants, with an analysis of their current state, challenges and the need for efficient water management policies. The report also includes a detailed methodology for building a water index, including a list of proposed water sustainability indicators, their units of measurement, and their position in the PSR framework.