ABSTRACT
This article describes the efforts of the Mexican government toward more efficient management of water resources. Inaccordance with the Mexican Constitution, municipal governments have been responsible for urban water and sanitation services. However; in practice most municipalities have weak finances and little expertise in managing water systems and the federal government still plays an important role in the management and financing of water infrastructure.
The article highlights the current state of the water sector in Mexico, including some of the main aspects of the legal and institutionalframework. It discusses the main difficulties faced by the municipalities in accomplishing their task. The strategy of the federal government, in order to achieve better urban water management, has focused on four main policies: changes in the legal and institutional framework for water management, further decentralization, new financing schemes, and greater private sector involvement. It concludes that flexible approaches should allow municipalities to find appropriate institutional, financial, and technical solutions.