The literature review on Water Development in Somali region of Ethiopia was carried out as part of a process to develop the Best Practices Guidelines for Water Development in Somali region, Ethiopia. Somali region, a predominantly pastoral area, is prone to recurrent drought cycles which cause untold suffering to Pastoralists' assets and human life. The Best Practice Guidelines was developed by the regional government in order to synchronize water development activities with pastoral lifestyle. In an environment where everyone may be tempted to think that availing permanent water sources everywhere would address the impact of drought to pastoralists, it is possible to forget that permanent water sources cause sedentarisation. This results in concentration of large herds of animals at and around water points, which causes environmental damage. The literature review was carried out to identify best and worst practices in the region and elsewhere in similar pastoral communities which would then inform the development of the guideline. The review provides important information for development partners interested in supporting water development in Somali region and similar areas.