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Abstract
The specific objectives of the paper are to assess the existing institutional situation associated with water resources and the state of developing Integrated Water Resources Management (IWRM) process in Lao People's Democratic Republic and based on that assessment, to shed light on problems and constraints in water sector and possibly suggest opportunities to meet the emerging challenges/the implementation of policies and institutional strengthening processes that will lead to improved management of water resources and governance. The key developmental challenge for enhancing good water resources governance in the country is the establishment of sustainable, effective and integrated approach to water resources management. To reach this, several objectives are to be fulfilled: integrated, intersectoral, and multi‐objective decision making about water resources at the basin scale; broad participation and empowerment of stakeholders in water resources decision making; effective coordination among sectors and institutional scales; strong, effective, and culturally appropriate institutional, policy, and legal frameworks that reinforce integrated, accountable, participatory, and sustainable management and that minimize corruption; and informed and science‐based decision making.