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One of the areas that show the most visible effects of human-induced land alterations is also the world's most essential resource: water. Decision-makers in arid regions face considerable difficulties in providing and maintaining sustainable water resource management. However, developing appropriate and straightforward approaches for quantifying water use in arid/hyper-arid regions is still a formidable challenge. Meanwhile, a better knowledge of the effects of land use land cover (LULC) changes on natural resources and environmental systems is required. The purpose of this study was to quantify the water consumption in a hyper-arid region (New Valley, Egypt) using two different approaches—LULC based on optical remote sensing data and groundwater storage changes based on Gravity Recovery Climate Experiment (GRACE) satellite data—and to compare and contrast the quantitative results of the two approaches. The LULC of the study area was constructed from 1986 to 2021 to identify the land cover changes and investigate the primary water consumption patterns. The analysis of groundwater storage changes utilized two GRACE mascon solutions from 2002 to 2021 in New Valley. The results showed an increase in agricultural areas in New Valley's oases. They also showed an increased in irrigation water usage and a continuous decrease in the groundwater storage of New Valley. The overall water usage in New Valley for domestic and irrigation was calculated as 18.62 km3 (0.93 km3/yr) based on the LULC estimates. Moreover, the groundwater storage changes of New Valley were extracted using GRACE and calculated to be 19.36 ± 7.96 km3 (0.97 ± 0.39 km3/yr). The results indicated that the water use calculated from LULC was consistent with the depletion in groundwater storage calculated by applying GRACE. This study provides an essential reference for regional sustainability and water resource management in arid/hyper-arid regions. [ABSTRACT FROM AUTHOR]