INTEGRATED WATER RESOURCES MANAGEMENT (Iwrm) PARADIGM WAS INTRODUCED SOME 36 YEARS AGO AFTER THE CREATION OF THE INTERNATIONAL WATER MANAGEMENT ASSOCIATION (IWRA), BRAGA 2001. Iwrm COMPRISES OF 4 MAIN AREAS: LAND USE, RIVER BASIN, URBAN AND COASTAL ZONES.IN A RECENT PARADIGM SHIFT RELATED TO INTEGRATED WATER RESOURCES MANAGEMENT (Iwrm) IN THE CONTEXT OF HOLISTIC AND INTEGRATED APPROACH, ATTENTION IS BEING DRAWN TO CONSIDER INSTITUTIONAL AND LEGAL FRAMEWORK AND STAKEHOLDER PARTICIPATION WITHIN THE GENERAL FRAMEWORK. A REPORT BY THE 4TH WORLD WATER FORUM, (WWF, 2006), ENTITLED: IMPLEMENTING INTEGRATED WATER RESOURCES MANAGEMENT: THE INCLUSION OF Iwrm IN NATIONAL PLANS, REVIEWS THE PROGRESS LEVEL MADE BY COUNTRIES IN SOME 6 REGIONAL CATEGORIES. ACCORDING TO 2 DIFFERENT STATISTICAL SURVEYS BY JAPAN WATER FORUM (JWF) AND GWP UP TO 28% HAVE MADE GOOD PROGRESS BUT SOME 28% ARE IN THEIR INITIAL STAGES OF INTEGRATED WATER RESOURCES MANAGEMENT. IRAN IS WORKING TOWARDS ACHIEVING THE MILLENNIUM DEVELOPMENT GOALS (MDGS) WHICH WAS SET IN 1992 IN JOHANNESBURG. THE STRATEGIC LONG TERM PLAN WAS RATIFIED BY THE COUNCIL OF MINISTERS IN 2004, A YEAR AHEAD OF THE 2005 DEADLINE (IwrmC, 2004).SO THE QUESTION IS HOW TO IMPLEMENT THE INTEGRATED CONCEPT. THEREFORE, SOME KEY RECOMMENDATIONS WERE MADE BY WWF FOR FUTURE WORK ON Iwrm. THESE ARE CENTERED ON 5 THEMES: INSTITUTIONAL & LEGAL FRAMEWORK, STAKEHOLDER PARTICIPATION, SOCIOECONOMIC, CAPACITY BUILDING AND ENVIRONMENTAL SUSTAINABILITY.THE NEGLECT OF THE INSTITUTIONAL DIMENSION IN WATER MANAGEMENT HAS CREATED A HUGE DRAWBACK IN IMPLEMENTING Iwrm. SALETH & DINAR (2004) ARGUE THAT AS WATER SCARCITY IS EXPERIENCED IN MANY PARTS OF THE WORLD [INCLUDING IRAN]; WATER SECTOR INSTITUTIONS NEED TO BE REORIENTED TO CATER FOR THE NEEDS OF CHANGING SUPPLY-DEMAND AND QUANTITY-QUALITY RELATIONSHIPS IN THE EMERGING REALITIES.THIS PAPER REVIEWS THE IMPORTANCE OF INSTITUTIONAL ANALYSIS AND IN PARTICULAR THE ROLE OF STAKEHOLDER PARTICIPATION IN THE MANAGEMENT OF WATER RESOURCES WITH REFERENCE TO COASTAL ZONES MANAGEMENT IN GENERAL AND IRAN IN PARTICULAR.