This document provides information about the hydrological cycle and water budget. It begins with the objectives of understanding water sources and the hydrological cycle components of evaporation, precipitation, infiltration, runoff and subsurface flow. It then discusses the global water resources and usage, including increasing population growth. The bulk of the document defines and explains the various components of the hydrological cycle, including evaporation, condensation, precipitation types, interception, infiltration, subsurface flow, runoff and storage. It provides an example water balance equation and long-term water balance calculation. Finally, it briefly discusses the global water cycle and a typical hydrological cycle for the UAE.