In a live televised speech today before hundreds of supporters, Mohammed Mursi said Egypt is not calling for war. but his country is "ready to defend" its water security.
"Our blood is the alternative," Mursi said, and the crowd erupted in applause.
The crisis started last month when Ethiopia diverted the flow of the Blue Nile, one of the Nile's sources, to make way for construction of the dam. The move took Egypt by surprise.