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Water, which might appear as a gift from nature, actually needs huge human investment in order to serve the varied and growing global demand on this resource. Creating the investment structures and securing the funding to meet water needs is a key enabling factor to achieving good water governance.

Changing the behaviour of water users towards more sustainable practices is a necessary step in achieving water security. One way to promote such change is through economic instruments. Economic incentives involve the use of prices and other market-based measures to improve the way water is managed and used. They provide incentives to water users to use water carefully, efficiently, and in a manner consistent with the public interest. They have both positive and negative effects, rewarding users that recognise the true value of water and penalising profligate and anti-social use.

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. 

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.

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.