This paper describes an analysis approach to assess water consumption attributed to electricity generation required to meet the demand for the entire Saudi residential building stock. In addition, the analysis aims at estimating the water consumption reduction due to cost-effective energy retrofit measures for the Saudi housing stock. The analysis estimated that the water consumed annually to generate electricity for the Saudi entire housing stock is 135 MCM representing almost 10% and 4% of the water used by the industrial sector. Moreover, it is found that both electricity generation need and associated water consumption can be reduced by 15.7% when lighting is retrofitted with low-energy fixtures and by 25.8% when high efficiency air conditioning systems are installed for all the existing Saudi housing stocks. For the housing stock located in the Central region with prevalent dry climates, replacing existing air conditioning by evaporative coolers can save 11.1 TWh/a (25.5%) in electricity consumption but increase the water consumption by 36.2 MCM/a (80.6%). A cost-benefit analysis of lighting retrofit is found to be highly cost-effective for both households and the government with payback periods of less than 1 year.