With one of the lowest per capita freshwater resources in the world, China have been investing in and seeking new ideas and methods for improving both supply side and demand side management of water resources. This has included numerous experiments in “eco-compensation”. These experiences demonstrate that eco-compensation should be considered as a potential tool for Integrated River Basin Management to address financing shortfalls, identify management pitfalls, and convince key stakeholders to participate.
To increase agricultural productivity, the Ministry of Agriculture and Irrigation has encouraged many farmers to organise water users groups. Yields are to be increased through the collaborative and efficient participation of beneficiary farmers engaged in irrigation. This has led to efficient water distribution throughout the managed watercourse. The most important lesson learnt is the importance of the strengthening of each water user group.
The city of Jabalpur experienced water shortages. Action was taken through a scheme, which would augment the water supply to the city, by substantially increasing funding. The key lesson is how an empowered local body can respond to water challenges in a successful manner.
Providing safe drinking water to poor families is a critical development issue of India. To address the common outbreaks of water borne diseases, the Naandi foundation together with Water Health India initiated the pilot rural Community Safe Water Scheme that combines cost-effective water purification technology with community-driven and performance-based approach. This case illustrates that with awareness raising campaigns, rural households are willing to pay for clean drinking water.
Steadily shrinking for decades due to unsustainable irrigation policies, the Aral Sea is under increasing pressure, making both allocation and availability major challenges. Action has been taken and the Basin Economic Allocation Model has been developed as a long-term decision support system to facilitate putting “value on water use”. This demonstrates that economic models can be applied to assess economic value maximization of different water uses.
The legal and regulatory framework of water utilities in Peru provides opportunities for local financing of investments. Despite this, the sector remains heavily dependent on public financing. Action has been taken by the World Bank to initiate a study investigating the barriers to local private funding. This case study illustrates that public loans, private loans and equity investment are appropriate to fund the necessary investment.
In Chile, water has been privatised. However, in order to make sure that access was still available to all strata of society, the privatisation was accompanied by a robust regulatory framework, including a system of direct subsidies for drinking water consumption and sewage services for low income households. This case thus illustrates that in case of privatisation, a direct subsidiary scheme should be considered.
El Cerrito Canton community has spent decade attempting to get access to clean water. Action was taken to organise a Community Development Association, leading to the execution of a potable water project. The key insight drawn from this case is that, it is key for communities to have water access and management is their capacity to get organised.
In Costa Rica, action was taken to introduce water pricing to pay for services provided by forests in watershed areas. As a result, Costa Rica’s watershed owners are beginning to be rewarded for providing water, whether for drinking or for generating electricity. The main lesson is that initiatives that ensure local groups are included in the benefits of conservation are needed to involve them in helping to protect the water catchment areas.
The Costa Rican government decided to revise its system of water use levy when it became evident that it was disproportionately low. Action was taken by key stakeholders to reconstruct a design of the water use levy to reflect two basic elements of water charge: water use rights and environmental water services. From this experience, the most important lesson is that political will must support legal and technical works when reforming economic instruments.