Sheinbaum Enacts General Water Law Amid Water Crisis

On Dec. 11, President Claudia Sheinbaum published in the Official Gazette of the Federation the General Water Law, which expedites the new law and simultaneously reforms, adds to, and repeals numerous provisions of the National Water Law.  

The publication follows approval by the Chamber of Deputies on Dec. 3, where the bill passed in general terms with 328 votes in favor, 131 against, and five abstentions, reflecting both broad legislative support and persistent divisions over the scope and implementation of the reform.

A Rights-Based Legal Framework

The National Water Law regulates the human right to water and sanitation enshrined in Article 4 of the Mexican Constitution, defining water as a public good of social interest and prioritizing personal and domestic consumption above all other uses. The law establishes the responsibilities of federal, state, and municipal authorities to guarantee access, availability, quality, affordability, and sanitation, while recognizing water’s interdependence with other human rights, including health, equality, and a healthy environment.

A central provision prohibits the total suspension of potable water and sanitation services due to non-payment, requiring service providers to maintain a minimum supply sufficient for basic human needs. This represents a structural shift away from a purely commercial approach to water provision toward a rights-centered model.

Governance, Planning, and New Enforcement Powers

The reform clarifies the distribution of competencies between the Federation, states, and municipalities and reinforces basin-level governance through the National Water Commission (CONAGUA), basin organizations, and citizen participation mechanisms. Hydrological regions and watersheds, rather than political boundaries, are positioned as the core planning units.

The law mandates long-term hydric planning that incorporates climate change prevention, population growth, ecosystem health, and hydrological variability. It introduces a multi-phase planning framework spanning six-year cycles, anchored by the Estrategia Nacional Hídrica (National Hydric Strategy), which sets projections at 10, 20, 40, and 60 years.  

New concepts are formally incorporated into the legal framework, including treated wastewater reuse, hydric responsibility, water security, and criteria for addressing overexploitation. The law also establishes a National Water Reserve Fund to support the reassignment of water volumes and strengthens CONAGUA’s authority to issue emergency measures, regulate reassignment, conduct inspections, and impose administrative sanctions.

Beyond administrative penalties, such as fines, temporary or permanent closures, and revocation of concessions, the law introduces criminal penalties for illegal extraction, diversion, or commercialization of national waters. It also targets corrupt practices by public officials or private parties seeking concessions or authorizations through unlawful means. This reflects a broader federal push to dismantle black-market trading of water rights and tighten state control over national water resources.  

Industry and Real Estate Implications

The reform has significant implications for water-intensive sectors, including real estate. AMEFIBRA, which represents real estate investment trusts responsible for about 4.5% of Mexico’s GDP and more than 30 million m² of gross leasable area nationwide, has emphasized that clear, predictable water regulations are critical for investment certainty and asset operation, MBN reports.

The association has expressed support for a framework that prioritizes the human right to water while enabling efficient and sustainable management, strategic reassignment of water rights, regulatory clarity for operators, feasible compliance pathways across regions, and expanded use of rainwater harvesting for non-domestic applications. AMEFIBRA says it will continue collaborating with authorities to strengthen water efficiency across industrial parks, shopping centers, offices, hospitals, hotels, and schools.

Political Debate and Opposition Proposals

The enactment of the General Water Law comes amid intensifying political debate over how best to address what lawmakers and experts describe as the most severe water crisis in Mexico’s history. During public hearings, Movimiento Ciudadano legislator Laura Ballesteros called for a more comprehensive governance overhaul, proposing a dedicated Ministry of Water, a National Water System, and a Citizen Council with decision-making authority to curb discretion in concessions and dismantle water monopolies.

While Ballesteros acknowledges the urgency of reform, she criticizes the federal government’s alternative draft as overly aggressive and lacking clear protocols, warning that legal uncertainty could increase risks for users and complicate emergency response. Movimiento Ciudadano’s counterproposal includes a Water Emergency Trust designed to activate during droughts, floods, or fires, emphasizing transparency, intergenerational justice, and prioritization of domestic and community use.

Other opposition parties have also elevated water policy as a central issue. In November, PRD representatives in the State of Mexico presented a 10-point action plan focused on infrastructure rehabilitation, reduction of losses, improved oversight, and citizen participation, arguing that short-term measures are insufficient to confront the scale of the crisis, reports MBN.

A Structural Turning Point

With its entry into force on Dec. 12, 2025, and a 180-day deadline for states to harmonize local legislation, the General Water Law initiates a complex implementation phase that will reshape water governance across Mexico.  

The reform signals a decisive shift toward a rights-based, sustainability-driven water regime, redefining the balance between social needs, environmental protection, and economic activity. Its success will depend not only on enforcement capacity and regulatory clarity, but also on sustained coordination between authorities, communities, and the private sector as Mexico confronts escalating water scarcity.