The water crisis in Iran is so violent that Iranian social life can be thought of as possessed by the shattered environment. Meanwhile, it seems that the State has a key role to reverse this condition. But, we can ask whether the current Iranian State has the capability to do so, theoretically and practically? To answer the question firstly, I will demonstrate  that any resolution to water crisis in Iran demands  social strategy(and not only economic strategy); secondly, historically speaking, the dominance  of Capitalism-Colonialism paradigm both effects the politics of State on one side, and the Iranian social life on the other, resulting in the dominance of   “Market System” mechanisms in political structure and its consequences on the economic and cultural structure hence the water crisis in Iran in recent years; thirdly, if the State were environmentalist, it could theoretically and practically “transform” the institutions which exacerbate the water crisis in Iran.
This paper, via historical and documentary studies, demonstrates that historically in Iran the phobia from Autocratic State results in the dominance of Capitalism-Colonialism paradigm in the decision-making system; consequently , mechanisms of “Market System” (privatization and to make competitive)are deemed as highly acceptable and win legitimacy in political as well as economic and cultural spheres. These exacerbate the water crisis thus the resolution lies in “transforming “of aforementioned paradigm through developing institutions pertaining to the “Environmentalist State”.