Last review: May, 2026
Banobras provides information on the sector in Mexico based on data from various sources in order to offer sector-specific knowledge and useful elements for decision-making. The content presented does not reflect the position of Banobras.
DOF: National Water Program 2026-2030 (May 18, 2026). Consult
According to the “National Water Program (PNH) 2026-2030” , the water sector in Mexico constitutes a strategic component for economic development, social stability and national security, as it is an essential input for productive activities such as agriculture, industry, energy generation and services.
Mexico has an average annual volume of renewable water of approximately 471,713 hm³; however, its availability is unevenly distributed across the territory. While the south and southeast concentrate nearly 68% of the resource, the central and northern regions—where 77% of the population lives and 82% of GDP is generated—face structurally low water availability conditions.
The pattern of water use reflects the importance of the agricultural sector in the national economy:
In terms of the source of the resource:
This profile demonstrates significant potential to improve water-use efficiency, particularly in irrigation systems.
Water Infrastructure
The PNH states that the country has a significant infrastructure base for water resource management:
This infrastructure constitutes an important foundation, although it requires modernization, rehabilitation and expansion.
Coverage and Service Provision
Mexico shows relatively high coverage levels in basic services:
However, structural gaps persist in:
Service provision faces challenges associated with operational efficiency, supply quality and the financial sustainability of utility operators.
Water Availability, Stress and Quality
Water conditions vary significantly across regions:
Other relevant elements:
These conditions generate impacts on extraction costs, future availability and environmental sustainability.
Investment Opportunities
The PNH identifies priority development areas:
These lines of action create conditions for public and private investment participation in the sector.
In the water sector, Mexico has an institutional and planning framework that coordinates the participation of the three levels of government and various stakeholders, with the objective of ensuring sustainable water management and fulfillment of the human right to water.
To access the information, please review the following documents:
The guiding instrument of the National Democratic Planning System that establishes the priorities, objectives and strategies of the Government of Mexico for the country’s development. In water matters, it defines guidelines to guarantee the human right to water, strengthen the sustainability of natural resources and guide public and private investment in infrastructure and services related to the sector.
The main sectoral planning instrument that defines the objectives, strategies and indicators for water management in the country. It guides sector development, including governance, efficiency in resource use, access to water and infrastructure investment.
Defines the guidelines of national environmental policy, incorporating sustainable water management as a key component for ecosystem conservation and climate change adaptation.
Description of the institutional structure responsible for policy, management and operation of the water sector:
It is the Federal Government ministry and authority responsible for the sector, tasked with incorporating criteria and instruments across different areas of society and public administration to ensure the protection, conservation and use of the country’s natural resources, including water, through a comprehensive environmental policy oriented toward sustainable development.
It is a decentralized administrative body of SEMARNAT responsible for administering, regulating, controlling and protecting national waters, as well as coordinating the country’s water policy. It is responsible for implementing the National Water Program, managing the concession regime and supervising resource use, strengthening its role as the leading authority in water governance.
Hydrological-Administrative Regions (RHA)
CONAGUA carries out its functions through 13 territories through which water management in the country is organized, based on hydrological basins as the fundamental units. This approach allows planning and managing the resource differently according to availability, demand and environmental conditions in each region.
Local Offices
CONAGUA units responsible for implementing the commission’s policies, strategies, programs and actions in the corresponding federal entities, in coordination with municipal and state utility operators.
A decentralized body of SEMARNAT dedicated to addressing national and regional challenges associated with water management and developing new approaches in research and technological development to protect the resource and allocate it efficiently and equitably among different users.
Institutional Program of the Mexican Institute of Water Technology 2025-2030
Local authorities responsible for providing public services related to drinking water supply and sewerage at the state and municipal levels. According to the Political Constitution of the United Mexican States, municipalities are responsible for public functions and services related to drinking water, drainage, sewerage, treatment and disposal of wastewater.
The Federal Government, through the National Infrastructure Fund (FONADIN), a financial instrument managed by Banobras and part of the development banking system, promotes the development of strategic infrastructure projects in the country. Within this framework, FONADIN created the Water Utility Modernization Program (PROMAGUA), which supports the structuring and financing of water projects through mixed investment schemes, with the objective of improving the efficiency, coverage and quality of drinking water, sewerage and sanitation services.
The compilation of international treaties, laws, regulations, decrees, agreements and federal, state and municipal provisions presented here is for informational purposes and intended to facilitate consultation:
The Ministry of Environment and Natural Resources (SEMARNAT), in coordination with the National Water Commission (CONAGUA), leads water policy in Mexico. While SEMARNAT establishes the strategic environmental direction, CONAGUA implements, regulates and supervises the management of national waters, ensuring their sustainable use, compliance with the regulatory framework and implementation of strategic programs such as the National Water Program.
Establishes the foundations to guarantee the human right to water and sanitation, incorporating principles of equitable access, sustainability and social participation. It defines the general framework for national water policy and guides the actions of the various sector stakeholders.
Regulates the exploitation, use, utilization, distribution and control of national waters, as well as their preservation in quantity and quality. It establishes the powers of the National Water Commission and the instruments for resource management, including concessions, allocations and oversight mechanisms.
Regulates the planning, procurement, execution and supervision of public works. In the water sector, it establishes procedures for the development of hydraulic infrastructure, including water supply, sanitation, irrigation and flood control projects, making it fundamental for the implementation of investments.
The following section provides a general overview of the project development process, ranging from initial planning to final execution.
Planning
CONAGUA establishes short, medium and long term sectorial programs, following the guidelines of the National Water Plan (PNH) 2026-2030, which is the document that rules the national water policy. The PNH is a special program derived from the National Development Plan 2025-2030 and the Sectorial Environment Program 2025–2030.
Identification
CONAGUA identifies water projects to be developed, based on planning documents. Unsolicited proposals of PPP projects should be aligned to this plans. At a subnational level, FONADIN’s Program to Modernize Water Operating Water Agencies (PROMAGUA) provides support for project identification.
Structuring
The Planning Deputy Direction of CONAGUA structures the projects to be developed, by identifying the needs of the sector. Subnational projects benefited by PROMAGUA are structured with FONADIN’s assistance.
Registration
For those projects that require federal funds (including FONADIN funding), CONAGUA presents a registration application to the Investment Unit of the Ministry of Finance.
Prioritization
The CIGFD will evaluate the projects that require the allocation of federal funds, and will decide its inclusion in the draft of the annual expenditure budget. Additionally, this commission will determine the prioritization of the projects based on: a) socioeconomic profitability; b) its impact in extreme poverty reduction; c) regional development, and d) concurrence with other programs and investment projects.
Autorización
Promotion
CONAGUA and state and local agencies are responsible for the promotion of the projects.
Bidding
The bidding process is responsibility of CONAGUA and state and local agencies, and the process must be registered in CompraNet.
Financing
Different sources of funds are available for the projects, depending on their particular characteristics and their financial structure, including federal funds or PEF, and funds form FONADIN, BANOBRAS, commercial banks, institutional and private developers, and from institutional investors.
Execution and Operation
Carried out by the awarded operators and/or developers, under the surveillance of CONAGUA, basin administrations and state and local agencies, according to contract terms.
Information on new projects (pre-investment, bidding and execution) and in operation within the Mexico Projects Hub platform, which at some stage of the project were considered investment opportunities and do not necessarily have Banobras / Fonadin participation.
New Projects
| Project | Sector | Subsector | Stage | Sustainability | With Ally Networks |
| 0998 Construction of the Armería Diversion Dam, Colima | Water and Environment | Water Supply | Preinvestment | No | No |
| 0994 Chiná Aqueduct and Campeche Waterway | Water and Environment | Water Supply | Preinvestment | No | No |
| 0993 Paso Ancho Dam | Water and Environment | Water Supply | Preinvestment | No | No |
| 0991 Improvement, expansion and sectorization of the drinking water network in Xpujil, Calakmul | Water and Environment | Water Supply | Preinvestment | No | No |
| 0989 “Agua para Colima” Aqueduct | Water and Environment | Water Supply | Preinvestment | No | No |
| 0988 Milpillas Dam | Water and Environment | Water Supply | Preinvestment | No | No |
| 0987 Healthy Water Trunk Networks for La Laguna | Water and Environment | Water Supply | Bidding | No | No |
| 0985 El Novillo Dam in Baja California Sur | Water and Environment | Water Supply | Preinvestment | No | No |
| 0984 Solis Dam Aqueduct | Water and Environment | Water Supply | Preinvestment | No | No |
| 0983 Hermosillo Dam System | Water and Environment | Water Supply | Preinvestment | No | No |
| 0982 Works from “Acapulco se transforma contigo” program in Guerrero | Water and Environment | Others | Preinvestment | No | No |
| 0977 Ciudad Victoria II Aqueduct | Water and Environment | Water Supply | Preinvestment | No | No |
| 0973 Flood protection works in Tabasco | Water and Environment | Others | Preinvestment | No | No |
| 0964 Rosarito desalination plant | Water and Environment | Water Supply | Preinvestment | No | No |
| 0962 Potable Water Extraction Zone for the Supply to Tulum City | Water and Environment | Water Supply | Preinvestment | No | No |
| 0912 Expansion of the “El Ahogado” WWTP | Water and Environment | Water sanitation | Execution | Yes | Yes |
| 0907 Tunal II Dam in Durango, Dgo. | Water and Environment | Water Supply | Preinvestment | No | No |
| 0016 Desalinization Plant of Los Cabos, Baja California Sur | Water and Environment | Water Supply | Execution | Yes | Yes |
| 0015 Water Management of Los Cabos, B.C.S. Integral Improvement | Water and Environment | Water Management | Execution | Yes | Yes |
Projects in Operation
| Proyect | Sector | Subsector | Sustainability | Ally Networks |
| 0942 Durango Potabilization Plant | Water and Environment | Water Supply | Yes | Yes |
| 0840 WWTP El Ahogado | Water and Environment | Water Sanitation | Yes | Yes |
| 0839 Desalination Plant of Ensenada | Water and Environment | Water Sanitation | Yes | Yes |
| 0600 WWTP Bahia de Banderas | Water and Environment | Water Sanitation | Yes | No |
| 0599 WWTP Hermosillo | Water and Environment | Water Sanitation | Yes | No |
| 0598 WWTP Atotonilco | Water and Environment | Water Sanitation | Yes | Yes |
| 0010 Desalinization Plant of Guaymas and Empalme, Sonora | Water and Environment | Water Supply | Yes | Yes |
Strategic Projects
Directory: Promotion Offices
Trust Bussineses
Trust Fund to Support the Mexico Valley Sanitation Project: Its purpose is to cover, using its assets, on behalf of and at the direction of the Technical Coordinator of the Project (the National Water Commission), or the Local Technical Coordinators (Water System of Mexico City and Water Commission of the State of Mexico), the acquisitions, leases, services, and hydraulic infrastructure works in the Metropolitan Zone of the Mexico Valley and its area of influence, or those directly related to these.
Project Development: Banobras offers services aimed at assisting public sector agencies and entities in the development of infrastructure projects.
Financial structuring of the project:
Program for the Modernization of Water Operating Organizations (PROMAGUA)
It allocates non-recoverable funds for the partial financing of studies and projects that contribute to the operational and financial sustainability of public entities related to the sector. Its operations are governed by the Policies, Bases, and Guidelines on Public Works and Related Services of the National Infrastructure Fund, ensuring transparency and efficiency at every stage.
Contact: fonadin.agua@banobras.gob.mx
Banobras makes available to interested parties, analysis sheets for the detection of sustainability practices in infrastructure projects, in accordance with the methodological framework “Attributes and Framework for Sustainable Infrastructure” of the Inter-American Development Bank (IDB). Its objective is to highlight sustainable practices, encourage their adoption in future projects and provide relevant information for investors in their economic, environmental, social and institutional dimensions.
To consult the projects that already have a sustainability record, select the “SEARCH CRITERIA>” option in the PROJECTS section, and then select “With Sustainability Analysis”; the projects that have a record will be displayed below.
In addition, Banobras offers an analysis tool that presents the potential relationship of the different infrastructure projects of the Mexico Projects platform with the 17 Sustainable Development Goals (SDGs) of the 2030 Agenda and their targets. This comparative analysis facilitates the use of data according to different criteria, such as the potential impact of projects and sectors against national and global development goals.
The comparison is only made between projects in the same subsector. To select and consult here.
The alignment of a project with the SDGs provides information on the degree of focus on sustainability; it provides a comparison between projects in the same sector and sub-sector and facilitates investment decisions, showing the highest and lowest alignment of projects to the SDGs. Comparative analysis facilitates the use of data according to different criteria, such as the potential impact of projects and sectors against national and global development goals.
In the case of the sector, 13 projects are identified in the platform that have sustainability practices detection sheets, which allows to know, among other things, the projects with more and better alignments to the SDGs. For more information, access the Sustainable Development Goals application:
Greater alignment of the sector:
Reduced alignment of the sector:
Banobras, through its Ally Networks application, provides information on companies participating in competitive public procurement processes for infrastructure projects in Mexico, based on official sources such as ComprasMX. It includes details on investment amounts, number of participations in bids, projects awarded, consortiums, and business associations, which allows the user to identify potential actors for the establishment of investments in the country.
To consult the projects that have information on the participating companies, select the option “SEARCH CRITERIA>” in the PROJECTS section, and then select “With applicant companies” at the end of the criteria.
In the application, you can consult on the sector:
This section offers documents, reports and reports with technical, statistical and regulatory information on the sector:
2025
2024
