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.
Legal frameworks play an important role in the management of water resources at a range of scales – from local and national legislation covering domestic use, to international treaties that govern waters shared by sovereign nations.
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.
A proper enabling environment establishes the rights and assets of all stakeholders (individuals as well as public and private sector organizations and companies, women as well as men, the poor as well as the better off), while ensuring for environmental quality. The enabling environment essentially consists of “rules of the game” that are laid out as to achieve a sustainable balance between the social, economic and environmental needs for water. These rules can be defined by the use of: (1) Policies; (2) Legislative Frameworks; and (3) Financing and Investment Structures.