Scarcity of water has emerged as a major problem globally due to climate change and population growth, especially in semi-arid and arid regions. Egypt is currently experiencing serious water challenges due to its limited water resources. The water challenges require optimal and sustainable water management, which should be linked to sustainable development goals. In this context, rainwater harvesting (RWH) is an efficient technique for sustainable management of water resources. This research aims to determine the optimal implementation of RWH systems considering the biophysical and socioeconomic characteristics of the study area. This research combines geographic information systems, remote sensing, multi-criteria analysis, and hydrological modeling in a case study in Wadi Watir in the Sinai Peninsula, Egypt. It then determines optimal sites for RWH structures using a combination of Boolean analysis, weighted linear combination, and depression depth technique. The study's findings are linked to the sustainable development goals to develop a sustainable RWH plan for the first time. The results indicated that 19% (666 km2) of the study area is highly suitable for RWH. The possibility of RWH is restricted to 16% (573 km2) of the watershed. The study results identified 12 optimal sites for checking dams and 14 locations for percolation tanks along the streams. This research puts forward a novel technique to address the challenges of water scarcity along with socioeconomic and environmental pressures while achieving sustainable development goals. © 2022 Elsevier Ltd