Monterrey Launches Program to Cut Water Losses

Monterrey’s Metropolitan Environmental Fund (FAMM), in collaboration with Monterrey’s Water and Sewage Services (SADM) and supported by Arca Continental and FEMSA, launched the Reconectando con el Agua (Reconnecting With Water) program to reduce water losses in Monterrey’s distribution network, where more than 40% of water currently fails to reach households. The initiative aims to recover approximately 3.5 million m3 of water annually by improving the efficiency of existing infrastructure without developing new supply sources.

The program represents the first investment platform in Mexico in which private-sector companies directly participate in reducing non-revenue water in an urban distribution system, positioning efficiency gains as a central strategy for strengthening water security in the Monterrey metropolitan area.

The initiative includes more than MX$30 million (US$1.6 million) in funding from FAMM, Arca Continental and FEMSA, alongside support from the Nuevo Leon state government through environmental compensation mechanisms. It was presented at the Club Industrial de Monterrey with participation from public authorities, private sector representatives and civil society organizations.

Interventions will focus on three priority macro-sectors, Felix U. Gomez, Magnolia and Centro de San Nicolas, selected based on infrastructure age, pressure levels and historical water losses. Planned actions include pressure management systems, leak detection and repair, improved metering and continuous monitoring to increase system efficiency.

David Garza, President, FAMM, said the initiative seeks to optimize existing infrastructure. “To move toward water security in Monterrey, we need to make better use of the system we already have. Reconectando con el Agua is precisely an example of how, when government, the private sector and technical organizations work together, it is possible to recover water for the city and strengthen the resilience of our system.” he said

According to project estimates, the first phase could reduce water losses by up to 35% in targeted areas, benefiting thousands of households. The recovered volume is equivalent to nearly 2.5 days of total metropolitan consumption.

Eduardo Ortegón, Director, SADM, said reducing non-revenue water is a key strategy for the state’s water security. “I am convinced that this program will mark a turning point in the water future of Nuevo Leon and will become a national and international benchmark of how, by working together, we can build a more efficient, resilient and sustainable water distribution system for future generations, helping to ensure sustainable water for life,” he stated.

The program integrates into Arca Continental’s broader water security strategy, which focuses on efficient water use, replenishment and access. Guillermo Garza, Executive Director of Public Affairs, Communication and Sustainability, Arca Continental, said sustainability is central to the company 's business model. “At Arca Continental, we understand that sustainability is not an isolated effort, but a central part of our business model. Initiatives like this reflect our commitment to being a good neighbor and contributing in a tangible way to the communities where we have operated for more than one hundred years.” he said.

Authorities and stakeholders described the initiative as a cost-effective approach to strengthening water security by addressing distribution inefficiencies rather than expanding supply. The model combines public, private and civil society participation and is expected to serve as a reference for similar efforts in other urban areas facing water stress.

Non-Revenue Water Remains a Structural Challenge in Monterrey

Water losses remain a structural challenge in Monterrey’s distribution system. According to SADM, non-revenue water, which includes leaks, illegal connections and measurement inaccuracies, has declined from 55% in 2023 to 45% in 2025, a reduction of nearly 20%. Despite this progress, the system remains significantly above international benchmarks and criteria from CONAGUA, which place acceptable losses between 20% and 30%.

In absolute terms, the scale of losses remains substantial. Monterrey’s distribution network dispatches around 1.42 million m3 of water daily, meaning that current losses of 45% represent approximately 639,000m3 per day. On a monthly basis, this amounts to more than 19 million m3.  While this highlights inefficiencies in infrastructure, experts note that not all non-revenue water is physically lost.

According to Santos Sáenz, Researcher, University of Monterrey (UDEM), only about 10% to 12% of total water corresponds to actual physical leaks, such as pipe ruptures or faulty valves. The remaining share is largely consumed through unregistered or irregular connections, meaning the water is still used by the population but not properly measured or billed. This distinction shifts the policy focus toward improving infrastructure management and measurement systems, while also addressing regulatory gaps and rising political scrutiny over the performance of the utility following the 2022 water crisis.