Mexico Seeks Water Reform With Stricter Concessions, Penalties

The Mexican government is drafting a constitutional reform and a new national water law aimed at dismantling the black market in water rights and strengthening control over the country’s water resources. The initiative, set to be presented to Congress in the coming weeks, would overhaul the National Water Law, restrict concessions, boost enforcement powers, and impose tougher penalties for violations.

One of the key changes would eliminate the transfer of concessions between private parties, a practice authorities say has enabled illegal trading. According to Efraín Morales López, general director of the National Water Commission (CONAGUA), unused concessions would instead revert to the state. “The government will decide whether to reallocate them,” he said.

The reform also proposes a new legal framework on water crimes, introducing steeper fines and asset seizure for repeat offenders. Current penalties range from 260 to 26,000 UMAs—up to MX$2 million (US$108,429)—but are often paid immediately, allowing offenders to continue operating. The new law would raise the minimum fine to 50,000 UMAs.

President Claudia Sheinbaum emphasized that water must be treated as a strategic resource, not a commodity. She said the reform seeks to end speculative trading of water rights, while simplifying access for small farmers and offering subsidies for irrigation energy.