Recent efforts have been concentrated in the development of models to understand and predict the impact of environmental changes on hydrological cycle and water resources in arid and semi-arid regions. In this context, remote sensing data have been widely used to initialize, to force, or to control the simulations of these models. However, for several reasons, including the difficulty in establishing relationships between observational and model variables, the potential offered by satellite data has not been fully used. As a matter of fact, a few hydrological studies that use remote sensing data emanating from different sources (sensors, platforms) have been performed. In this context, the SUDMED programme has been designed in 2002 to address the issue of improving our understanding about the hydrological functioning of the Tensift basin, which is a semi-arid basin situated in central Morocco. The first goal is model development and/or refinement, for investigating the hydrological responses to future scenario about climate change and human pressure. The second aim is the effective use of remote sensing observations in conjunction with process models, to provide operational prognostics for improving water-resource management. The objective of this paper is to present the SUDMED programme, its objectives, and its thrust areas, and to provide an overview of the results obtained in the first phase of the programme (2002-2006). Finally, the lessons learned, future objectives, and unsolved issues are presented.