Water governance

Water governance is the set of political, institutional and administrative rules, processes and structures that determine who decides on water, how those decisions are made, and with what resources water-related actions are carried out. Effective governance avoids overlap between authorities, increases transparency and allocates resources fairly, all of which are critical for achieving Sustainable Development Goal 6 (clean water and sanitation), corporate water neutrality and water resilience.

The OECD Principles on Water Governance (2015)

Adopted by the OECD in June 2015, the 12 Principles on Water Governance are the most widely used international reference. They are organised into three dimensions, with four principles each:

Effectiveness

• Clear allocation of roles and responsibilities across levels of government.
• Management at the appropriate scale, especially the river basin.
• Policy coherence across water, energy, food and land use.
• Adequate institutional capacity and skilled staff.

Efficiency

• Open, transparent and accessible water data and information.
• Sustainable financing and cost recovery.
• Sound, transparent regulatory frameworks.
• Innovation and adaptive governance practices.

Trust and engagement

• Integrity and transparency to prevent corruption and regulatory capture.
• Stakeholder engagement of users and civil society.
• Fair management of trade-offs between users, regions and generations.
• Regular monitoring and evaluation of water policy.

How performance is assessed

To support implementation, the OECD developed a water governance indicator framework and a self-assessment methodology, used by governments and basin authorities to identify gaps and track progress. Useful indicators include the degree of budget transparency in the water sector and the extent to which tariffs recover costs.

Why it matters

Robust water governance increases the effectiveness of investment and reduces the risk of water crises, which is increasingly relevant for companies exposed to water risk in their operations and supply chains. At Manglai we help organisations measure their environmental impact and understand water and climate risk. Discover how Manglai can help you.