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Policies & Institutions

WRS
Policies & Institutions

The institutional and policy framework for water resources management includes the definition and establishment of laws, rights, and licenses; of the responsibilities of different actors; and of standards for water quality and service provision, for safeguarding the environment, for land-use management, and for building and managing infrastructure that affects the quantity and quality of water resources. Policies and institutions are required at all levels ranging from local watershed management institutions to international basin agencies.

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Key Challenges
In recent decades there have been major—but uneven—advances in the use of innovative instruments for managing water, such as river basin authorities, stakeholder participation and water rights.

Water institutions need to address issues ranging from water allocation, quality, rights, and pricing to asset management and service delivery. Their performance is influenced by broader governance and human resource capacities. For effective water management, institutional design needs to ensure inclusion, accountability, and equity, and be flexible enough to adapt to change—such as in social policies and technologies. Strong institutions and sustainable governance also contribute directly to appropriate investment in, and proper operations and maintenance of, sound and reliable water infrastructure.

Recognizing and managing water rights is essential for management of river basins. In doing this it is first necessary to clarify that in most countries water is publicly owned and that a water right is a right to use water - not a right to own water. Water rights (of individuals and communities) should enjoy the same legal certainty as land and other property rights. Once established, such rights can trigger change. First, those requiring additional resources (such as growing cities) will frequently be able to meet their needs by acquiring the rights of those who are using water for low-value purposes. Second, there are strong incentives for these latter users to voluntarily desist, making reallocation both politically attractive and practical. Third, the establishment of formal water rights gives rise to strong pressures for improving the data required to manage the resource. And fourth, this reduces the pressures of a "race to the bottom," since those who have rights have a powerful interest in sustainability.

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World Bank Response
The World Bank actively supports institutional strengthening and the development of management instruments. Management instruments include regulatory arrangements; financial instruments, standards, and plans; mechanisms for the effective participation of stakeholders; and knowledge and information systems. The latter help to increase transparency; motivate effective water allocation, use, and conservation; and assure the maintenance and physical sustainability of water resources systems.

 
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