We analyzed the effects of changes in land cover on the water balance in Spain's Marina Baixa County, on the Mediterranean coast. To reveal how different land management strategies have affected the area's environment, four municipalities within the same catchment were studied: Benidorm, Callosa d'en Sarrià, Beniardà, and Guadalest. In the municipalities of Callosa and Benidorm, the proportion of the area covered by woodland declined by 4.2% and 30.2%, respectively, and woodland was replaced by agriculture and urban development. The abandonment of farmland produced a 17% increase in the proportion of the area covered by vegetation in Guadalest and Beniardá, where frequent forest fires have exacerbated a decrease in the area of pine woodland. Tourism development in Benidorm has been accompanied by an increase in the transportation infrastructure and by an expansion of areas with an impermeable surface, with the lowest level of infiltration into the aquifer system. These changes have generated a net water deficit in Callosa and Benidorm of more than 6 Mm(3)/year, creating a high demand for water imported from other municipalities (Guadalest and Beniardá) or from outside of the county to maintain the sustainability of the current water management strategies. The Marina Baixa case study is representative of many of the world's coastal areas that are undergoing rapid urban development based on an inappropriate understanding of human progress based mainly on economic development and thus provides insights into water management in other areas.