BASHAM NEWS

Structural Reform in Water Matters: General Water Law Initiative and Reform of the National Water Law

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October 20, 2025

On October 9, 2025, the Parliamentary Gazette of the Chamber of Representatives (Gaceta Parlamentaria de la Cámara de Diputados) published the Draft Decree Initiative to enact the General Water Law and to amend, derogate and add various provisions of the National Water Law (hereinafter, the “Initiative”), submitted by the Federal Executive.

The Initiative aims to recognize water as a human right and a strategic national asset, strengthening the State’s authority over water resources and their sustainable management.

1. Draft of General Water Law

The new legislation is presented as a regulatory law of Article 4 of the Constitution, with the purpose of guaranteeing access, use and sanitation of water as a human right. Among its main pillars, the following stand out:

Distribution of competencies: Delimits the powers of the Federation, federal entities, and municipalities to ensure access to, provision, and sanitation of water for personal and domestic use.

Community systems: Recognizes community water systems as non-profit public service providers in areas not covered by municipal, inter-municipal, or metropolitan services.

Interdependence of rights: Establishes the connection between water and other fundamental rights, such as access to a healthy environment, health, and food, promoting equitable and sustainable use.

2. Reform to the National Waters Law

The reform maintains its regulatory nature under Article 27 of the Constitution, preserving the focus on the ownership and exploitation of national waters, while incorporating substantive changes. Among mentioned changes, the following stand out:

Elimination of legal provisions:

  o Transfer of concession titles or discharge permits between private parties.

  o Temporary supply of concessioned water to third parties.

  o Change in water use.

Reduction of deadlines for extensions: Requests for extension of concession titles must be submitted within the last year of validity and no later than six months before expiration.

Limitation to non-expiration: The interruption of the extinction of rights through the payment of a guarantee fee is restricted to a maximum of two occasions, in order to avoid resource hoarding.

Increased penalties: Fine amounts for violations of the Law are doubled, and a new chapter on water-related crimes is introduced. The range of sanctions increases from 260 to 26,000 UMA (approximately MXN $29,416.40 to $2,941,640.00, or USD $1,588.35 to $158,835.85) to 260 to 50,000 UMA, with an approximate maximum limit of MXN $5,657,000.00 or USD $305,453.56. The conversion from Mexican pesos to U.S. dollars is based on the exchange rate published in the Official Federal Gazette (DOF) on October 15, 2025.

Water management and responsibility: Introduces the concept of water responsibility as a criterion for assessing the imposition of penalties and the applicability of extensions.

3. Relevance of the Initiative

The legislative proposal seeks to strengthen integrated water management in Mexico and address the water crisis through a regulatory framework that guarantees the human right to access, use, and sanitation of water for present and future generations.

4. Parties of interest

This Initiative is particularly relevant for:

• Holders of concessions or discharge permits issued by the National Water Commission (CONAGUA).

• Companies, communities, and industries involved in the use, exploitation, or treatment of water resources.

5. Next Steps

The Initiative must follow the ordinary legislative process and be published in the DOF to enter into force. In the meantime, it is recommended that individuals assess the potential regulatory impacts and prepare for the proposed changes. In the event that the future Law causes any harm, it may be challenged through an amparo proceeding, either within 30 days of its publication, or 15 days from the first act of application.

At Basham, Ringe y Correa, S.C., we will continue monitoring the progress of this Initiative and are prepared to provide comprehensive advisory services on water regulatory matters, including, where appropriate, legal defense and the challenge of provisions that infringe on acquired rights.

Sincerely:

Juan Carlos Serra

serra@basham.com.mx

Adolfo Athié

aathie@basham.com.mx

Jesus Colunga

jcolunga@basham.com.mx

Daniela Pineda

dpineda@basham.com.mx

Regina Sotelo

rsotelo@basham.com.mx

Marina Fernández

mfernandez@basham.com.mx