Analyzing Russian socio-economic issues from a long-term perspective is justified by the major problems that will have to be faced in the future. Such an analysis discloses that Russian water management is regulated not only by rules of law, but also by the behavioural norms of the Russian economic system. Therefore, problems in Russian water management cannot be solved merely through changes in water law and management tools alone. The major problem is that Russian economic and administrative structures were seriously deformed. In order to address the problems facing Russia successfully, a deep understanding of long-term changes in their historical context and of the problems caused by inert institutions created at earlier stages is necessary. This chapter provides an overview of these problems and suggests possible solutions.