Given the importance of water resources in sustainable development, it is necessary to investigate the direct and indirect impacts of inter-basin water transfer projects. The present research analyzed the status of the water resources in the south of Kerman province and the challenges of inter-basin water transfer that will result from transferring water from the upstream Halilrood. This study investigates economic, human and environmental consequences of water transfer from the Jaz Murian basin to the Dare Anjir basin and center of Kerman province, with a focus on the importance of water resources in residents' livelihoods in the southern regions of Kerman province. We seeks to answer the following question: what would be the consequences of water transfer from upstream Halilrood to the downstream plains of the Jaz Murian basin? The results indicated that this project will negatively affect the Jaz Murian basin and downstream plains. According to the findings, it is necessary to focus on water demand management in the target area (Kerman) and also pay attention to sustainable development, economic growth and industrial indicators of the southern Kerman province. As a part of regional policy, the promotion of balanced provincial development should be given priority. Also, the excessive consumption of water resources, especially by agricultural activities, can be curbed by fostering crop productivity, industrial development, tourism, and renewable energies.