Mexico Invests MX$2.6 Billion in Water Infrastructure

The federal government’s MX$2.6 billion water plan for the eastern State of Mexico aims to improve service reliability and reduce flood risks, while rising water stress pushes companies to make efficiency a core priority.

The federal government will invest around MX$2.6 billion (US$149.38 million) in water and drainage works in 10 municipalities in the eastern State of Mexico, as part of a broader push to strengthen water security in high-stress urban regions. The plan comes as companies face growing pressure to treat water efficiency as an operational priority rather than a sustainability add-on.

The federal government, through the National Water Commission (CONAGUA), is developing the Comprehensive Plan for the Eastern Zone of the State of Mexico, aimed at improving drinking water and drainage conditions in 10 of the most vulnerable municipalities in the Valley of Mexico. For the 2025-2026 period, the program will receive around MX$2.6 billion, according to CONAGUA.

The plan seeks to benefit more than 6.5 million people through over 100 infrastructure actions, including works related to drinking water supply, drainage, sanitation, and flood prevention. CONAGUA reports that the program has reached overall progress of more than 80%, with works being carried out in municipalities that face recurring water shortages, drainage limitations, and high exposure to flooding.

The investment forms part of the federal government’s broader water agenda under the National Water Plan, which includes 17 strategic water infrastructure projects across the country. In 2025, the federal government announced a planned investment of MX$122.6 billion from 2025 to 2030 for these projects, which are expected to benefit around 36 million people. The initiative has allowed the federal government to recover over 4 billion m³ of water, equivalent to three to four times the annual consumption of Mexico City.

For the Valley of Mexico, the investment responds to the water demand continuing to rise while distribution systems, drainage networks, and treatment infrastructure remain under pressure. The eastern State of Mexico has become one of the most sensitive areas in the metropolitan region due to its population density, uneven access to services, and vulnerability to extreme weather events.

CONAGUA’s plan focuses on increasing supply, improving infrastructure efficiency, including rehabilitating and expanding water networks, improving drainage systems, and reducing risks linked to flooding and wastewater management. These works are particularly relevant in municipalities where water losses, intermittent service, and insufficient drainage capacity have affected both households and local economic activity.

Rather than treating water access as a purely local public service issue, the government is increasingly positioning it as a national development priority tied to public health, urban resilience, industrial competitiveness, and climate adaptation.

Schneider Electric warns that the country’s high water stress is turning water availability into an operational risk for businesses. The company argues that water efficiency is becoming a strategic decision for companies, particularly as industrial operations face higher pressure to reduce consumption, monitor usage, and strengthen resilience.