The garden city of Mehriz faces simultaneous challenges of water crisis, spatial inequality, and weak urban governance, which threaten its ecological sustainability and historical identity. Using a case study approach, this research utilized national population and housing census data, statutory documents, and field observations, analyzing data by integrating six analytical frameworks: SWOT, DPSIR, PESTEL, Porter, VRIO, and Fishbone. Results showed the Mehriz plain aquifer declines by 0.5 to 1 meter annually, and approximately 30 percent of water is wasted in the distribution network. Also, the city's per capita green space (6.6 square meters) is lower than the national standard, and a significant gap exists between the population density of the historic fabric (over 120 persons per hectare) and peripheral developments (under 50 persons per hectare). The DPSIR analysis demonstrated that aquifer depletion intensifies spatial inequality through orchard degradation, land-use conversion, and reduced environmental quality. The VRIO analysis indicated that qanats and the garden-city structure, despite their value, rarity, and inimitability, have not become a developmental advantage due to weak institutional organization. Furthermore, the Fishbone analysis identified the root of problems in institutional fragmentation, poor coordination among responsible agencies, and the dominance of static physical planning. Accordingly, the main challenge of Mehriz is not absolute water scarcity, but the weakness of integrated water and spatial governance. Establishing integrated aquifer and garden-city management, reducing network water loss, continuously monitoring water resources, and utilizing qanat capacities in urban planning can enhance the resilience of this garden city in arid climate conditions.