On 21 October 2002, His Royal Highness Prince Sultan Bin Abdulaziz – Crown Prince, Deputy Prime Minister, Minister of Defense and Aviation and Inspector General – announced in Riyadh that nominations were being accepted for a new global Prize to be awarded biannually: the "Prince Sultan Bin Abdulaziz International Prize for Water".

The Prize aims to give recognition to the efforts that scientists, inventors, and organizations around the globe are making in water-related fields. The Prize is established to acknowledge exceptional and innovative scientific work which contributes to the sustainable availability of potable water and the alleviation of water scarcity, particularly in arid regions.