Mexico’s Water Concessions Reform Explained

Mexico City, Mexico — President Claudia Sheinbaum announced that next Monday she will present two legislative proposals to the Congress of the Union aimed at regulating water concessions and ensuring the resource is managed by the state.

Water as a Resource, Not a Commodity

Sheinbaum explained that the primary objective is to regulate water as a scarce resource and prevent it from being treated as a commodity.

"It is about bringing order and stopping the view of water as a commodity when it is a scarce resource, and to have the state truly regulate water concessions without allowing transfers between private parties," said the president.

The president recalled that during the government of Carlos Salinas de Gortari, the law was modified to allow the transfer of water rights between private entities.

Modifications to the National Water Law

Of the two proposals, the National Water Law will receive the most significant changes. The reforms will also include sanctions for those who steal water or fail to report changes in the use of concessions.

Decree to Facilitate Concession Regularization

The director general of the National Water Commission (CONAGUA), Efraín Morales López, explained that a accompanying decree will allow for the flexible regularization of expired concession titles, particularly benefiting small and medium-sized agricultural producers.

"This will give them legal certainty, access to credit, subsidies, and government programs," stated Morales López.

The decree aims to recover up to 4 billion cubic meters of water, equivalent to four years of supply for Mexico City, following a review of more than 536,000 concession titles.

Misuse of Agricultural Titles

The subdirector general of Water Administration, Mauricio Rodríguez Alonso, warned that many titles for agricultural use are being utilized for industrial purposes, water parks, golf clubs, or for selling water via water trucks, raising questions about the legality and ethics of these uses.

"We have found operations that supply up to 200 water trucks per day, at prices of 2,000 to 3,000 pesos each," he explained.

Hoarding of Titles and the Neoliberal Approach

Morales López indicated that some private individuals possess multiple concession titles and sell them when there is demand from industries or housing developments.

"During the neoliberal period, water was treated as a commodity, which led to the hoarding and speculation of titles," he affirmed.

The decree and the proposed laws seek to bring order, protect water, and guarantee its public management, prioritizing food production and social well-being.