Water planning includes the aspects of water management related to water policies, water law, and institutions. All of the World Bank’s client countries face major challenges in developing the laws, regulations, and institutions required for managing water resources in a more economically productive, socially acceptable,and environmentally sustainable fashion.

Water economics analyzes the economic aspects of water resources and water services delivery projects, and examines recent advances in water economics methodology, tools, and applications. Water economics also covers the financing of water projects.

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Key Challenges Water resources management is a highly political topic and planning and implementation needs to explicitly address the political economy of reform. This means recognizing that solutions have to be tailored to specific, widely-varying, circumstances. The art of reform is in picking the low-hanging fruit first, not making the best the enemy of the good, recognizing broader reforms outside of the water sector (often relating to overall economic liberalization, fiscal and political reform), and recognizing that those who are willing to change must be supported. The financing needs for water-related infrastructure in developing countries are huge. The World Commission on Water has estimated that investments in water infrastructure in developing countries need to increase from the current level of about $75 billion to $180 billion a year over the next 25 years. There is broad agreement that the investment needs cannot be satisfied by public funds alone and that finance from the private sector has an important complementary role to play. Back to Top

World Bank Response
The World Bank assists clients in strategic water resources planning. Improved resource and demand management is given high priority by the World Bank and many of its borrowers. This support follows a "pragmatic but principled" approach that respects principles of efficiency, equity and sustainability, but recognizes that water resources management is intensely political, and that reform requires the articulation of prioritized, sequenced, practical and patient interventions. Support includes the preparation of Country Water Resources Assistance Strategies (CWRAS).