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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.

Management instruments are specific methods that enable decision makers to make rational and informed choices when it comes to water management and to tailor their actions to specific situations. Good water governance, according to IWRM principles brings together perspectives and knowledge from different domains. Consequently, the instruments presented here are based on a variety of disciplines such as hydrology, hydraulics, environmental sciences, system engineering, legal sciences, sociology, and economics.

It is often said that the current water crisis is mainly a crisis of governance, much more than a crisis of water shortage or water pollution per se. In the context of IWRM, governance is defined as the range of political, social, economic and administrative institutions that are in place (or need to be in place) to develop and manage water resources in sustainable manners. This section identifies four institutional roles that must be fulfilled for water governance systems to achieve sound IWRM practices: B1 – Regulation and Enforcement; B2 – Water Supply and Sanitation Services; B3 – Coordination and Facilitation; and B4 – Capacity Building.

The theme for the International Day for Biological Diversity in 2013 chosen by the Convention for Biological Diversity (CBD) is “Water and Biodiversity”. This theme was chosen to coincide with the United Nations designation of 2013 as the International Year of Water Cooperation. The International day for Biological Diversity is celebrated annually on the 22nd of May.

The Lempa River is shared by Guatemala, El Salvador and Honduras, making its management a good example of transboundary cooperation. To reach consensus, action was taken to develop a treaty as part of a regional process.  However, since the treaty was not accompanied by strategies designed by local actors, it is somewhat weak. Nonetheless, this case illustrates that political willingness is crucial for advancing towards IWRM in transboundary watersheds. 

To protect the Panama Canal Watershed, which was created when the Panama Canal was constructed, formal limits to its utilisation was set up, including the Panama Canal Treaty and the creation of a Panama Canal Authority.  This case study predominantly illustrates the peculiar problems that arise when a highly artificial watershed is managed by a modern, internationally oriented public corporation with a country that is still copping with the hydraulic culture and a national water policy.

The area of Zarati river sub basin belongs to important water recharge zones. There is, however, a need to restore the area, which has been susceptible to degradation. Action has been taken in a bottom-up manner, applying Participatory Rural Assessment. Important lessons can be drawn from this in terms of IWRM, as it sets a clear example of active participation of the communities and the local authorities.