Water Availability Necessary to Support Industrial Activity

Water availability has emerged as one of the most pressing issues shaping Mexico’s path to industrial growth, sustainability, and nearshoring competitiveness. As the country expands its network of over 500 industrial parks, balancing industrial demand with human and environmental needs has become a defining national challenge.

Balancing Growth and Human Need

Mexico’s water crisis is not a distant threat; it is a present reality. According to the National Water Plan 2024–2030, over 35 million Mexicans lack reliable access to water, while per capita availability has dropped by more than 30% in two decades. Industrial operations increasingly face restrictions, particularly in northern states like Nuevo Leon, where the reservoir system supplying Monterrey fell below 40% capacity in 2022, leading to daily water cuts in both residential and industrial areas.

This dual pressure has forced policymakers and industry leaders to rethink water allocation. President Claudia Sheinbaum’s administration has prioritized water as a human right, initiating a national “deprivatization” effort that has already recovered 4 billion m³ of water, three to four times Mexico City’s annual consumption. The regularization of concession titles seeks to guarantee fair use and legal certainty, especially for small and medium agricultural producers.

“This process will provide certainty and access to credits, subsidies, and federal programs for producers while ensuring efficient and transparent water management,” says Mauricio Rodríguez, Deputy General Director of Water Administration, CONAGUA.

Plan México: Infrastructure for Sustainability and Equity

Under Plan México, the government has earmarked a US$20 billion investment in water projects by 2025 and MX$186 billion over the six-year term, integrating water management as a central pillar of national development.

According to Minister of Environment and Natural Resources, Alicia Bárcena, the plan “aligns with the European Green Deal and focuses on sustainable investment, trade diversification, energy transition, and circular economy initiatives.” Projects include 17 major infrastructure works benefiting 31 million people, large-scale sanitation programs for the Lerma-Santiago, Atoyac, and Tula rivers, and modernization of 200,000 hectares of irrigated land.

Meanwhile, CONAGUA’s portfolio of 37 strategic water projects will receive MX$30.8 billion (US$1.57 billion) in 2025 alone, generating 65,000 direct jobs. These include the Rosarito Desalination Plant in Baja California (set to be Latin America’s largest), the Solis-Leon Aqueduct in Guanajuato, and the Tunal II Dam in Durango. These works “are designed to secure water access for the next 20 to 40 years,” says Efraín Morales, Director General, CONAGUA.

Water Efficiency, Investment, and Innovation

Although industrial parks represent just 5% of national water use, their economic weight, accounting for 21% of GDP, 89% of exports, and 50% of foreign investment, makes sustainable water policies crucial. AMPIP is leading efforts to transition Mexico’s 500 industrial parks into Eco-Industrial Parks (EIPs) that integrate environmental and social responsibility.

A 2023 survey found that only 30% of parks apply sustainability practices. To address this, the EIP Initiative (2022–2025) includes a financial-instrument study for green investment, a roadmap for renewable energy and green buildings, and the first EIP certification in Mexico.

AMPIP’s 2024–2030 policy proposal rests on four pillars:

• Sustainable Supply and Consumption: Each park must ensure 0.5L/s per hectare and promote water reuse

• Responsible Discharge: Compliance with NOM standards and “zero tariff” wastewater discharge rights

• Administrative Simplification: Streamlining water concession and permit procedures

• Financing Sources: Expanding access to sustainable infrastructure funding.

AMPIP also promotes green infrastructure like rain gardens and rainwater harvesting to mitigate droughts, emphasizing that industrial parks must become “agents of change for sustainable water management.”

The Rise of the Water Positive Model

A transformative concept gaining traction is the Water Positive model, in which companies return more water to ecosystems and communities than they consume through reuse, aquifer recharge, or efficiency investments. This model is reshaping corporate sustainability strategies and could redefine Mexico’s industrial competitiveness under nearshoring, writes Juan Pablo Rodríguez, Director, Rotoplas.

“Water Positive is not just about conservation, it is about regeneration. It is about building resilience, social legitimacy, and global market access,” says Rodríguez.

The approach also opens the door to water credit markets, where certified volumes of saved water can be traded between agricultural and industrial users. Chile’s pilot program, where tech firms pay US$0.93/m³ of water saved, offers a potential blueprint for Mexico.

Private Investment Opportunities

The modernization of irrigation systems and expansion of desalination, reuse, and green infrastructure projects create a fertile ground for public-private collaboration. Development banks like Banobras and NAFIN are expected to play a central role in financing clean technologies and water-efficiency solutions, reports the World Bank.

By integrating sustainability metrics into investment criteria, Mexico could unlock ESG and climate finance to scale the Water Positive model and accelerate infrastructure upgrades across industrial corridors.

Binational and Geopolitical Dimensions

Mexico’s commitment to deliver 2.2 billion m³ of water to the United States under the 1944 Binational Water Treaty underscores how domestic management has international implications. As of Oct. 1, Mexico had delivered only 46.4% of its quota, heightening pressure to balance domestic needs with diplomatic obligations.

Experts warn that “reducing demand on both sides of the border, not merely adjusting delivery volumes, is the only path toward sustainability.”

Follow our MBS 2025 tag and do not miss our coverage leading to Mexico Business Summit 2025 on October 28–29, 2025. On Tuesday, July 29, 2025, we will delve into how supply chain optimization can help companies counter geopolitical uncertainty. 

Interested in staying ahead in the nearshoring landscape? Mexico Business Summit 2025 offers exclusive insights from leading industry experts and government officials on the key trends, risks, and opportunities fueling Mexico’s emergence as a global nearshoring powerhouse. Discover how supply chain innovations, workforce development, and sustainability strategies can strengthen your competitive edge.

Register now to secure your place and position your business at the forefront of this dynamic market: https://mexicobusiness.events/MBS/2025