Mexico is currently facing important water management challenges. Cities in the country are facing water scarcity and at the same time, they struggle with floods during the raining season. The water sensitive urban design (WSUD) approach has proved to be helpful in tackling urban water challenges such as floods and water scarcity and it is being implemented in cities around the world. The WSUD approach highlights the role of both the water cycle and the water utilities systems, when transitioning towards a water sensitive stage. Therefore, the objective of this research is to analyse the current situation of the water cycle and the water utility (SIAPA). To do so, we have selected the Metropolitan Area of Guadalajara (MAG) and proposes a case study approach. Within our case of study, we answer two questions: 1) What are the causes of water scarcity and flooding in the MAG? and 2) What are the proposals to solve these problems under a WSUD approach? By answering these questions, we identified that the water management in the MAG corresponds to a single purpose infrastructure. This type of management does not contribute to solve the problems of water scarcity and floods. The water supply policy is based only on the construction of large dams disregarding the storage and use of rainwater, and reuse of greywater, and water-conservation devices. In order to transition towards a water sensitive stage, a WSUD approach that includes multi-purpose infrastructure should be considered. Such as green roofs, swales, rainwater gardens, infiltration trenches, etc.