Baja California Sur (BCS) is an arid sparsely populated coastal state in northwest Mexico. Population growth, agriculture and booming tourism have lead to severe overexploitation of underground aquifers and saline intrusion. This paper reviews the current water and energy situation in BCS. The state enjoys very high levels of solar radiation, typically above 5 kWh/m2 /d, and the suitability of renewable energy powered desalination for BCS is discussed, including past efforts in BCS and present challenges for this technology.