In the context of Jordan’s chronic water scarcity, this research investigates how ethical leadership is practiced within the Ministry of Water and Irrigation. Moving beyond technocratic models, the study adopts an anthropological lens to frame governance as a "moral ecology"—a dynamic space where environmental constraints, cultural values, and organizational structures intersect. Through qualitative ethnographic methods, the paper highlights the role of middle managers as intercalary leaders who must navigate the tension between rigid bureaucratic mandates and the informal social networks, or wasta, that underpin Jordanian social life. The research argues that these informal networks are not merely indicators of institutional weakness or corruption; instead, they function as culturally meaningful mechanisms essential for maintaining trust, cooperation, and legitimacy within the ministry. By situating ethics in the everyday labor of relational negotiation, the study demonstrates that effective governance in resource-scarce environments requires moving away from individualistic leadership models toward a more socially embedded understanding. Ultimately, this work contributes to business and cultural anthropology by reframing ethical leadership as a relational and ecological process, offering a nuanced framework for understanding institutional life under severe environmental and social pressure.