Myths, Misconceptions, and Realities

Chapter 3

Water Resources Management

Water supply does not exist in isolation. There are
many factors that affect city water supplies, including
social, environmental, and economic impacts. Water
resources management is one of the most important
environmental dimensions. A sustainable supply of water
to a city will depend on the quantity and quality of the
water available and its distance from that city. Other
major factors are population growth and the wise use
of the water resources available. This chapter deals
with the latter by considering the supply aspects, the
demand aspects, and policy and management.

A. Supply Aspects
This section examines water supply by looking at
sources, sustainability, and rights of users.

Groundwater Sources

Cities are usually located near adequate or once

adequate water supplies—mostly near groundwater,
but sometimes near surface waters. Looking around Many still rely on groundwater
Asia, many examples (Bangkok, Jakarta, and Manila)
of groundwater overexploitation can be seen. These
examples show that what could have been a finite but people rely less on using rainwater and have instead
long-term sustainable resource has been destroyed exploited rivers and groundwater through the use of
through the depletion of aquifers, which has caused dams and tubewells. This second fact has led to a grow-
salinization and land subsidence. The excessive use ing and in some places unbearable stress on water
of groundwater has been a short-term expediency that from these sources. In India, the exploitation of ground-
is becoming a long-term disaster (Figure 3.1 shows the water has been encouraged, but little has been done
extent of surface water use in major cities in Asia). to recharge it. As a result, groundwater tables nation-
Watersheds have been allowed to become denuded, wide are falling. In years when rains are low, this prob-
which encourages flash runoff that erodes fertile soils lem becomes an emergency. The poor, who depend
and results in the loss of steady water flows in the dry on dug wells (which dry off first), are the first to suffer.
season. Industrial wastewater and domestic sewage (Agarwal, 2001)
have been allowed to pass untreated into major water-
ways, thereby endangering water supplies of down- Watershed Rehabilitation
stream users. Asian cities cannot continue to go to
other water catchments without first ensuring that they One difference between developed and develop-
have optimized water availability and use within the ing countries is that catchments for water supplies in
vicinity of urban demand. developed countries are strongly protected. They have
good vegetation cover, and human, animal, or agricul-
Over the last hundred years there have been two tural uses of that land are prohibited. In developing
major shifts in water management. First, the people countries, especially those with large populations, the
have given over their role to governments. Second, governance associated with the use of watersheds for


Asian Water Supplies

Figure 3.1 Surface Water Sources (2001)

[piped supplies only]
Water Taken from Surface Sources (%)

100

80

60

40

20

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om

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ia
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at
ra

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ng

an

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in

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O
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Ka
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ol

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other purposes is invariably quite weak. Furthermore, National Water Supply and Drainage Board (Sri Lanka)
the rehabilitation of watersheds is a long-term under- has been experimenting with watershed rehabilitation
taking that does not find much support when measured in different topographical and soil regions with a view
against the need for short-term political gains. to determining in each region the appropriate amount
of integrated ground cover that would also give farm-
When watersheds are denuded of trees, through ers the potential for revenue generation.
logging and cutting for firewood, rainfall rapidly be-
comes runoff, which causes the erosion of fertile land It is possible to reforest more than 100 million hect-
and reduces the time during which this water can be ares of degraded and unproductive land in India. Wa-
used, unless it is stored using dams. This situation is of tershed development of 100 million hectares at the
course exacerbated by the wet and dry seasons that present norm would cost about $10 billion. At $1 billion
dominate the climates of many Asian countries. Water- per year, assuming a 10-year completion period, the
shed rehabilitation will facilitate the retention of rainwa- cost is insignificant compared with the enormous ben-
ter, which will help river flows become perennial. The efits that would be derived. In terms of water storage,
flood control, reduced soil erosion and loss of nutrients,
and additional agricultural crops, fuel, timber, and other
produce, the value of India's reforestation in monetary
terms would be much more than the total value of all
the country's current industrial assets.1 If even a tiny
fraction of the value of this great asset was spent on its
upkeep, and if traditional (village) rainwater storage
systems are revived, India's economy would improve
more rapidly than by any other means. (IEI News, 2000)

1 This may be a matter of opinion, rather than fact, but it is worth careful
Promotion of rainwater harvesting consideration.


 Water Resources Management

harnessed. What is required is for local authorities to

amend the bylaws so that no new home is built that
does not have rainwater collection from the full roof
area and storage for that water on-site. In addition, for
the owners of existing houses to also comply with these
bylaws, time frames of 5–10 years can be given for the
modification of the roofs and grounds of all existing
homes. Chennai (India) is an example of a city making
good progress in rainwater harvesting (see
www.geocities.com on the Internet). Once again, gov-
ernance is important.

It does not matter how much rain you get, if it is

not captured you can still be short of water. India re-
ceives most of its annual rainfall in just 100 hours. If
this water is not captured, there will be shortages. When
water harvesting and watershed development pro-
grams are handled well, it has been shown that rain-
water harvesting is the starting point for meeting drink-
ing water needs, eradicating rural poverty, generating
massive rural employment, and reducing distress mi-
gration from rural areas to urban areas. Because
smaller catchments give much more water than larger
catchments, one state is planning to construct 10,000
check dams (one dam with a catchment of 10 hectares
will collect much less water than 10 smaller dams, each
with a catchment of 1 hectare). If the Government puts
its mind to it, drought can be banished completely in a
Potential for rainwater harvesting maximum of 10 years. The problem is one of mind-
sets. Rainwater harvesting demands a new approach
to governance, a participatory form of governance in-
Rainwater Harvesting stead of a top-down bureaucratic one. (Agarwal, 2001)

Why is rainwater harvesting important? It is often Check Dams and Wetlands

said that water should be free, because it is a gift from
nature. That is true if the user of that water collects it as There is no doubt that one major frustration of water
it falls from the sky or draws it from a spring, before it resources management in Asia is the failure to capture
has been treated or delivered, because it is the treat- the wet season runoff so that it can be used throughout
ment and transport of water that have associated costs. the dry season. In the past, too much attention was
Water tariffs must be raised to meet the costs of water given to building large dams. Now, more attention is
supply, which continue to increase due to more ad- being turned to small (check) dams. Kathmandu Valley
vanced treatment, greater distances to be traveled, in Nepal is an example of a location where many check
lower groundwater tables, and more costly distribution dams might be used to store water during the wet sea-
in densely populated areas. As tariffs rise, rainwater son. When urban water supply tariffs are raised to
harvesting and other options become attractive.2 To around $0.40–0.50/m³, it may become attractive for the
collect water off the roof of a home or office and store it private sector to build check dams that would divert
for future use is efficient. While there are some con- wet season flows into Sri Lankan style "tanks," or even
straints, such as the room for storage in very densely artificially constructed underground storage, so that the
populated areas, there is tremendous potential not yet water collected can be sold to the utility for urban sup-
ply purposes in the dry season.
2 I once had a conversation with a man from Frankfurt, Germany. The cost of
water was discussed, and the man said water cost $2/m³ and sewerage The dams of the estimated 200 million beavers that
cost $3/m³ in his home city. Then he said, “but I don’t pay that—I collect
rainwater off my roof.” These days, Frankfurt is well known as a city that once lived in the continental United States made mead-
uses rainwater harvesting. ows out of forests, as wetlands slowly captured silt.

!
Asian Water Supplies

These dams resulted in a remarkable and uniform water resources management have not always re-
buildup of organic material in valleys, a checkerboard of sulted. The following learning experience from Austra-
meadows throughout the woodlands, and a great deal lia is a timely warning that theory is not always mani-
of edge (the fruitful zone where natural communities fested in practice.
meet). Beavers are a keystone species. Their dams cre-
ate wetlands that provide homes and food for dozens of The legislative basis for water markets in Australia
other species, including ducks, moose, fish, frogs, and is almost complete, and water trading for irrigation is
great blue herons. Wetlands clarify water and prevent now possible in 87% of its river systems. It was ex-
soil from washing downstream. When beavers make a pected that managing water demand, including envi-
series of dams and ponds within a drainage basin, the ronmental needs, would lead to a reduction in water
water cycle in an entire watershed is affected. Wetlands usage and increase efficiency as water moved (via
are like sponges. They soak up water during storms and trade) from low value to high value users. Contrary to
release it slowly in drier times. Water detained in wet- expectations, increased prices have increased water
lands behind beaver dams is more likely to percolate usage overall. And most of the water sold interstate
down to groundwater, raising the water table and creat- was not originally used by the sellers. Moreover, this
ing springs and small streams throughout a watershed. water is being transferred to land that was not previ-
A tenth of the total land of the United States was once ously irrigated (leading to increased risks of salinity).
beaver built wetland. Now the beavers and these wet- One outcome of the operation of water markets is that
lands are gone. (Outwater, 1996) rice and cotton crops, those that have the greatest im-
pact on Australian rivers, are showing no signs of de-
cline. Instead, rice is on track to break production lev-
Pollution Control
els, and the top nine private water holders are in the
cotton trade. (Isaac, 2002)
Water availability can drive economic growth. And,
along with a ready source of labor and ready markets
Current conflicts among water users are governed
or transport to markets, water availability has encour-
mostly by ad hoc political decisions. If, however, they
aged industries to spring up in cities. Industries, how-
were governed by the free market value of water, and if
ever, damage waterways through pollution, discharge
customary and legal water rights were freely traded,
of raw sewage, and disposal of garbage. Incentives
then such conflicts could result in win-win situations
must be created for the relocation of industries to
freely chosen by all parties. What we need to precipi-
industrial estates, preferably downstream of cities,
tate this is a paradigm shift in urban water supply tariffs.
where their effluents can be treated before they are
The options for the farmers are then considerable. They
discharged. Town planning rules must be transparent
can sell the whole of their customary water rights. They
to the public and implemented. Industries that are wa-
can improve irrigation efficiency or plant crops that are
ter intensive should be closely monitored, like they are
less water intensive and sell the water saved. Or, they
in Singapore, not only for pollution but also for their
can sell their water rights only for the dry season. While
conservation measures. In line with this, relatively high
it is important to secure economic gains for farmers, the
tariffs can encourage conservation. The "polluter pays"
question of job losses cannot be ignored, so alternative
principle can be applied in urban areas, and this can
employment should be secured as part of the solution.
be regarded as trading for the right to restrict other
uses. This more than anything is a question of gover-
Subsidies and having the money trail run through
nance. Others may argue that one could also consider
governments are impeding the trading of water rights.
a "beneficiary pays" principle. Perhaps there is room
More effort must be made to recognize the customary
for both. As noted at the Third World Water Forum,
water rights of farmers and others. More awareness of
which was held in Japan in March 2003, national ac-
this matter needs to be developed through the Internet
tions should be more focused on pollution control at
and other media outlets. Records and documentation
the source instead of simply building more and more
related to trading water rights should be more trans-
advanced water treatment plants at high cost.
parent for the public. We must explore, through sur-
veys, the willingness of farmers to trade water rights. It
Trading Water Rights is quite possible that more private sector development
and management of water would result from freely trad-
While there have been many advocates of trading ing these rights.
water rights (mostly on economic grounds), the ex-
pected advantages of allowing the market to determine

"
 Water Resources Management

It is an unreasonable situation that Asia is now facing, B. Demand Aspects

one in which new water sources to satisfy increased
demands—resulting from rapid urbanization—are now This section examines demand by looking at water
often secured on the basis of a 10-year design horizon, use and access to this resource.
instead of design horizons of 50 or 100 years, which would
be acceptable to secure water for basic human needs.
The problems must be sorted out now, before they Irrigation
become even more acute and civil conflicts and wars
emerge over water use. Two keys to resolving these About 90% of all water use in Asia is for irrigation.
issues are recognizing water as an economic good and Yet, when we talk of a "water crisis," it seems that the
trading water rights. For example, Angat Dam in the gains that can be made from this sector in terms of
Philippines represents the next major source of water for efficiencies and recognizing water as an economic good
Manila, but only if the water rights can be traded (see Box have to a large extent been ignored. Low efficiencies
3.1). When water supply tariffs rise to approximate the result from water losses in canals through evaporation,
real cost of water, that is to say in the $0.30–0.40/m³ range leakage, and pilferage. They come from irrigation meth-
for many Asian utilities, other options for water security ods that waste water. They come from growing crops
present themselves, such as trading water rights. that are heavy water users, such as paddy crops, when

Box 3.1 Trading Water Rights—Angat Dam Irrigation versus Manila Water Supply

Economic Justification utility for a guaranteed source of 21 m³ per

second represents a much cheaper and faster
• Five million of the 12 million people in Manila
solution to providing piped water to the 5 million
are not connected to piped water, 5 years
people in Manila without access to piped
after PSP in water supply.
supplies. This should translate into an increase
• Two reasons for the high number of people in the water tariff of no more than $0.06/m³.
not connected are given. First, the tariff is
too low to allow concessionaires to invest. • An average domestic tariff of $0.40/m³ in
Manila is clearly feasible and affordable and
Second, there is an inadequate water source.
should ensure that all the urban poor not
• The farming population of 22,000 also relies connected to piped water get connected as
on water from Angat Dam to irrigate (mostly quickly as possible.
paddy) crops. Yet, in times of drought, they
can lose all water to Manila. Political Reality
• Most of the land being irrigated from Angat • Water rights are held by the National Irrigation
Dam will in all likelihood become urbanized Administration. And this organization, in
within the next 20 years. response to rapid urbanization, encourages
irrigation of more land.
• There can be a win-win situation for the urban
poor in Manila not connected to piped water • Owners of the land have no water rights.
and the farmers, if the whole of the water rights
of the farmers are traded to the urban dwellers • Tillers of the land (farmers) have no water
over time (say, for example, 10 years). rights.

• If a price of $0.03/m³ is paid to farmers, they Government Options

have the potential to triple their current
income, as long as they also plant new crops • Produce a transparent policy or plan for land
(like potatoes) that do not need irrigated and water use in the future.
water.
• Buy the land or require private developers to
• When compared with developing a new buy the land for controlled urban development
source, payment of $0.03/m³ by the water and lease back to farmers in the interim.

#
Asian Water Supplies

for the purpose of generating income other crops will volumes at lifeline rates, thereby providing subsidies to
do just as well on much less water. They come from all, including the rich.
the salinization of soils caused by the use of too much
water. They come from the lack of mechanisms to trade Little effort is going into rehabilitating watersheds
customary water rights in a free market. And they come to secure future supplies. It is a waste of funds to treat
from national policies on subsidies and food security and distribute water if it is lost or wasted. As urban
that are often in conflict. populations continue to expand, there is sometimes a
need to go farther afield (more than 100 kilometers) to
Continuous irrigation, without proper drainage, harness new water sources, and this is becoming very
gradually destroys land and nearby streams and rivers costly, not only in capital costs but also in operating
through salinization. The sun's heat evaporates irriga- (pumping) costs. Unfortunately, this fact is seldom re-
tion water, leaving salts behind. This water also flushes flected in tariffs. Much can be done to have more effi-
salts out of mineral rich soil, leaving these to dry on the cient use of water in the urban context. In some cities,
surface or dissolve in groundwater and poison plant including Bangkok, Jakarta, Kathmandu, and Manila,
roots. Furthermore, where rainfall is limited, crops must NRW is around 40% of production or more. The tariffs
be carefully chosen. Sugarcane is just about the worst for piped water are so low that there is little demand
crop choice in terms of water needed—whereas pota- management.
toes would be much more beneficial. (Time Interna-
tional, 1990)
Water Scarcity
Subsidized irrigation is one reason for waste. Farm-
Water scarcity is a relative term. It depends on loca-
ers rarely pay more than one fifth of the cost of operat-
tion, climate, season, and potential use by humans. The
ing public irrigation schemes, let alone capital costs. In
scarcity value of water is determined by the quality of
most cases, farmers can cut their water use by 10–
water, the quantity of water, and the number and type of
50%. It has been shown that an investment in irrigation
water users. It is greatly influenced, therefore, by the
efficiency is usually an investment in crop and soil pro-
integrity of watersheds, overexploitation of groundwa-
ductivity. Better water management often leads to in-
ter, cost of water transport and distribution, density of
creased yields, a reduction in erosion, and a reduction
populations, and water pollution levels. What is being
in the amount of fertile cropland that becomes water
seen (and is clearly demonstrated by the rapid rise of
logged, salted, or sapped of nutrients. (Postel, 1997)
bottled water use) is that the urban issue is one of scar-
city of clean and potable water, which is also a reason
Demand Management and Water Conservation behind rainwater harvesting becoming more and more
relevant for cities. But water scarcity in Asia is not mani-
Although average domestic water consumption in fested across the board. It is characterized more by un-
European cities is only 130 liters per capita, many cities equal access to water. For example, half the population
in Asia use around 200 liters per capita (for those con- in a city might get piped water and half might rely on
nected to piped water). This can be traced primarily to vended water. Another example, involving irrigation, is
low tariffs and a lack of public awareness concerning where farmers at the head of a system might get plenty
the importance of conserving water as a scarce re- of water and farmers at the bottom of a system might
source. When tariffs are raised in many Asian cities miss out altogether on water for their crops. The chal-
(Chennai, Colombo, and Manila are examples) there is lenge, then, is to overcome this lack of equality.
no drop in demand, indicating that there is no price elas-
ticity of demand at these levels. Standpipe water is in Grossly underpricing water perpetuates the illusion
many cases free to users, and it is common to see that it is plentiful and nothing is lost when it is wasted.
water being wasted at standpipes in South Asian coun- Many of the world's water shortages stem from failing
tries. Water is also wasted through poor plumbing in to value water at anything close to its true worth.
homes, leaks in distribution systems, and overstorage (Postel, 1997)
on a 24-hour basis, which is related to users' attempts
to adjust to intermittent water supplies. In Asia, unlike Most of the world does not treat water as a scarce
Europe, there is little attempt to conserve water through resource. The foremost challenge related to water scar-
toilet or shower retrofitting. Singapore is an exception, city in developing countries involves inefficient water
and the PRC offers some good examples of industrial use in agriculture and urban areas and by industry.
and domestic water conservation. The block tariff sys- Inefficient use is linked to subsidized rural and urban
tems employed by Asian utilities invariably have large water use. In line with this, irrigation water is essentially

$
 Water Resources Management

not priced. The price of water in cities does not cover C. Policy and Management
the cost of delivery. And capital investment decisions
in all sectors are divorced from the management of this This section examines policy and management by
resource. It is not uncommon for water subsidies to go looking at different approaches and challenges.
disproportionately to the better off (irrigation farmers
and urban water users connected to public systems). ADB'S Water Policy
(Rosegrant, 1995)
ADB's water policy (see Box 3.2) addresses ap-
Industrial Water Use proaches to water management and development. It
seeks to promote the concept of water as a socially
Water utilities in cities often rely heavily on revenue vital economic good that needs increasingly careful
from industrial users to stay financially viable. In management to sustain equitable economic growth and
Greater Colombo, for example, the average industrial reduce poverty. The conservation and protection of
tariff is six times the average domestic tariff. Yet indus- water resources in the region through a participatory
try is invariably not controlled in terms of location and approach are at the heart of the policy. References are
type, so polluting industries, like carpet factories, are made to specifics of the water policy throughout this
located upstream from domestic water users. There are book.
very few industrial estates (where some collective treat-
ment of effluents can be made). There are almost no Management Principles
incentives for industries to relocate to areas where they
will have less effect on residential zones. There is The following ideas reflect some of the latest think-
heavy exploitation of groundwater (normally without ing from South Asia.
charge) by industry, and there is little knowledge of or
control over water use by industry in terms of water • Three sets of stakeholders—managers, users, and
needs and conservation measures. In addition, it has social auditors—need to interact.
been noted that some major industrial users of public
piped water are using armed personnel to guard illegal • Society's ability to respond to local water manage-
connections. Moreover, in Sri Lanka, the sand mining ment needs is primarily an issue concerning infor-
of rivers—a livelihood for many and a cheap resource
mation, governance processes, and the structure
of civil society.
for construction—is allowing seawater to move far in-
land, which is upsetting the water supply intakes for • Watershed management has to do with afforesta-
several towns. In short, governance is a real issue in tion and check dams as much as with livelihood is-
the industrial use of water in Asian cities. sues concerned with irrigated agriculture.
• History suggests that an effective approach to wa-
Water for the Environment ter management may be to allocate equitable
shares among stakeholders.
The need for minimal "environmental flows" for • Absence of clear water rights results in inequi-
water left in rivers during the dry season is now begin- table access to water resources, and the estab-
ning to be recognized. These flows are still very low lishment of water markets and rights will create
and probably inadequate, but recognition is at least a incentives for users to make efficient use of their
start. There is a need to consider the whole ecological water entitlements.
regime of rivers, including fishing as a livelihood; fish-
ing as a sport; recreational needs, such as swimming, • The most effective instruments to reduce water
sailing, and white-water rafting; flood and fertility re- demand may be agricultural price policies and
gimes; artificial lakes with tourism potential; garbage subsidies.
control; and storage of wet season flows. • Management issues are rooted in interactions be-
tween complex and interdependent water resources
and economic, environmental, cultural, institutional,
and social systems. (Moench et al, 1999)

%
Asian Water Supplies

Box 3.2 The Water Policy of the Asian Development Bank (in a Nutshell)

Promote a national focus on water sector increased public awareness, and provisions to
reform. Developing member countries (DMCs) ensure that the poor are not excluded will be
will be supported to adopt effective national water supported.
policies, water laws, and sector coordination
Promote regional cooperation and increase the
arrangements; improve institutional capacities and
mutually beneficial use of shared water
information management; and develop a national
resources within and between countries. The
action agenda for the water sector. Throughout,
primary focus will be on the exchange of information
the needs of the poor will be specifically factored
and experiences in water sector reform. Support will
into legal, institutional, and administrative
be provided to enhance awareness of the benefits
frameworks.
of shared water resources, create sound hydrologic
Foster the integrated management of water and socio-environmental databases relevant to the
resources. Integrated management will be based management of transboundary water resources, and
on conducting comprehensive water resources implement joint projects between riparian countries.
assessments and concentrating interlinked water
Facilitate the exchange of water sector
investments in river basins.
information and experiences. Socially inclusive
Improve and expand the delivery of water development principles will be supported to promote
services. Focusing on water supply and sanitation stakeholder consultation and participation at all
(rural and urban), irrigation and drainage, and levels, increase the access of poor consumers to
other subsectors, support will be provided for basic water services, and enhance water
autonomous and accountable service providers, investments in DMCs through public-private and
PSP, and public-private partnerships emphasizing community-nongovernment organization (NGO)
equity in access to water for the poor and partnerships.
underserved.
Improve governance. This will be accomplished
Foster the conservation of water and increase by promoting decentralization; strengthening
system efficiencies. Packages that combine monitoring, evaluation, research, and learning at all
water use and resources management charges levels, particularly in public sector institutions; and
to recover costs, improved regulation and building capacity. (ADB, 2001a)

River Basin versus Local Management willingly share information with water supply authori-
ties. In default of the desired trading of water rights,
On the one hand we learned at Dublin3 that water however, we see other mechanisms, such as com-
should be managed at its lowest practicable level, but pensation and water levy payments, that mimic this
on the other hand we are now told that comprehen- type of trading. The Melamchi Water Supply Project
sive water resources management on a river basin in Nepal provides such an example (see Appendix 2,
basis4 is best. There is potential for conflict. This has Kathmandu case study).
to do as much with local versus national politics as
with anything. We are seeing (in Sri Lanka) how it is
Managing Water Resources to
very difficult to get various water users to agree on
Meet Megacity Needs
development and management on a more compre-
hensive basis. Allocation of water rights is still an
Some findings of a regional study and consulta-
issue. In many countries, irrigation authorities do not
tion on this subject—in the cities of Bangkok, Beijing,
Delhi, Dhaka, Jakarta, Karachi, London, Manila,
3 International Conference on Water and Environment held in Dublin, Ireland, Seoul, Singapore, and Tokyo (ADB,1993)—are pre-
in January 1992.
4 Management on a river basin basis is the management of water from the
sented. Ten years later the findings are still valid.
top to the bottom of its catchment of rainfall in an integrated manner, rather
than the management of water within the confines of local authorities.

&
 Water Resources Management

Problems • Wastewater should be regarded as potentially hav-

ing value for reuse in agriculture, maintaining sur-
• Growth rates are explosive.
face water flows, and groundwater recharge.
• The use of resources causes conflicts.
Institutions
• Rivers and the living environment are polluted.
• Roles of agencies should be carefully defined.
• The urban poor are marginalized.
• Water and sanitation utilities in megacities should
Main Findings be able to act as bulk suppliers to urban poor areas.
Utilities and local governments should adopt flex-
• Controlling pollution is the top priority.
ible approaches to the provision of water to unau-
• Demand management by pricing is needed. thorized settlements and base their decisions on
commitments to pay for services.
• Water must be treated as an economic as well as
social good.
Economic and Financial Aspects
• Scope for recycling and reuse in industry and agri-
• Demand side should receive more attention, and
culture must be identified.
increased efforts need to be made to estimate de-
• Water is a priority need of the poor, and they are mand and understand its determinants in an eco-
willing to pay. nomic sense. Financial revenue estimation should
increasingly be made on demand information, rather
Urban Planning than simply estimating required revenues based on
future financial costs.
• Development strategies should have a horizon of
15–25 years. • Subsidies, when used, should be explicit and trans-
parent and target the urban poor. They should be
• Urban zoning with industrial estates is needed.
directed at the demand side rather than the supply
• Development in flood plains should be avoided. side.
• Urban planning should integrate water planning with
land use, housing, drainage, and environmental pro- Conflict of Water Users
tection.
• Equitable sharing of water resources can be based The main users of freshwater in Asia are farmers
on a basin development plan addressing social, (through irrigation), next come the urban water utilities
political, and economic aspects of various options. that serve domestic, commercial, industrial, and some
gardening and stock raising needs. Hydropower facili-
• Water resources planning and management should ties are, strictly speaking, not consumptive users, but
include monitoring the quantity and quality of their activities do influence others. The environment
sources. needs a certain amount of water to be reasonably well
• Investment cost analyses should include public and maintained. And recreation and tourism also rely on
private expenditures, as the latter can be very high freshwater.
if the supply is intermittent.
By far the greatest potential for conflict among us-
Wastewater Disposal ers involves irrigators and urban water utilities, as ur-
banization continues to grow at rates of around 5% per
• In dense areas of megacities, the long-term solu- annum. First comes the desire to take over the water
tion to wastewater disposal is piped sewerage and used by the irrigators, as it is the next nearest source
treatment with separate sewage and drainage of water to develop. Next comes the sale of farmland
pipes. for subdivision and estate construction. But there is also
• Effluent discharges should be downstream from wa- great conflict between farmers for water. Those at the
ter supply intakes. Discharge standards should be bottom end of the irrigation network invariably miss out
in times of drought. Then there is the conflict that arises
consistent with water uses in catchments.
when water is taken from one locality or river basin and
• Sanitation schemes that achieve local improve- transferred to another for irrigation or water supply.
ments in one area at the expense of others are not Certainly the environment is greatly altered. Livelihoods
appropriate in megacities. (water wheels, irrigation, and fishing) are affected, and

'
Asian Water Supplies

aesthetics are impaired. Hydropower often involves Agriculture was and remains the largest consumptive
dams for storage of potential energy, and these dams use. The city of La Serena initially planned to construct
severely alter the regime of rivers for other users. the Puclara Dam to satisfy its rapidly growing water
When industrial and domestic water users mine requirements. With the introduction of a water code,
groundwater, they are in conflict with future users, be- many farmers in the region recognized that the water
cause access will be deeper and more costly, and the rights they held had a higher value than their water's
risk of saline intrusion will often be ignored until the current agricultural use. Farmers put in place more ef-
damage has been done. Pollution of waters, especially ficient irrigation systems requiring lower water volumes
by industrial users, affects other users of the water and sold all or part of their water rights to the city at
downstream as well as groundwater users. Religious good prices. The transfer of the agricultural water rights
use of water is greatly impaired by such activity. Finally, to La Serena has led to the indefinite postponement of
there is the potential conflict of use that results from the dam's construction. The reduction in water use in
local management of water versus comprehensive the agriculture sector has helped control salinity, which
water resources management on a river basin scale. was primarily caused by excessive use of water. Intro-
Watersheds involve the conflict between urban water ducing an economic value for water rights has also had
users and inhabitants who live in or near watersheds positive impacts on water utilities. For example, Chile's
and cut down trees for much needed fuel for cooking. main water company chose to invest in the reduction of
When it comes to interbasin transfer, governments of- NRW rather than pay for additional water rights to meet
ten state that water belongs to the nation, but more its customers' growing demand.
and more now the customary rights of the settled
people are being observed. In line with this, their past Groundwater use by industries should first be ex-
and future use of water must be considered. amined to decide whether it is in the best interest of
cities and their environments to relocate these indus-
Unfortunately, where these uses conflict, it is not tries. However, if it is found that these industries pro-
easy to compare apples with apples. The nearest we vide essential services, like the services provided by tour-
can come to that is (sadly) to put a monetary value on ist hotels, their use of groundwater should be monitored
such uses and allow market forces to determine proper in an effort to control extraction, and they should pay for
rewards and penalties. This means that we must rec- the water used, as the water belongs to the nation and
ognize customary use now and in the future and allow industrial use prevents or restricts other uses.
current and future beneficiaries to participate in deter-
mining equitable sharing. Once trading water rights D. Conclusion
becomes a reality, conflict resolution by politics can be
eliminated. But the impetus for trading water rights must In most cases, but especially in South Asia, water
come from domestic urban water users. When they pay is treated as a social rather than an economic good.
tariffs of around $0.40/m³, instead of roughly $0.05/m³, The most pressing need is to get entire populations in
there will be something with a realistic value to trade. urban areas connected to 24-hour supplies of potable
But as long as domestic tariffs remain low, there will be piped water. Without tariff levels being appreciably
little incentive to transfer water rights. raised, however, this is unlikely to happen. Yet
affordability is not preventing such increases, as there
The case of water transfer from Melamchi Valley to are very few cases in which those connected to piped
Kathmandu Valley for domestic water supply is inter- water pay more than 3% of their household income for
esting, as the water levy is to be charged to consumers the service.
in Kathmandu Valley and paid to the people living in
Melamchi Valley. In essence this is trading water rights, Just as the past 20 years has shown that NRW
but it does not go under that name because legally the cannot be reduced by dealing with this problem in iso-
people of Melamchi Valley do not own the rights to that lation, it can be seen that water conservation and de-
water, the nation holds the rights. mand management cannot be introduced in the same
way. They are part of the bigger picture of governance,
Chile has been a pioneer in introducing tradable policy, regulation, accountability, and transparency (see
water rights. In 1981, Chile's water code allocated (with- Figure 2.2). Conflict between water users is as much
out charge) property rights to existing users of water. about governance as anything else. In the absence of
Property rights for new users were sold by auction. clearly defined and transparent policies, ad hoc inter-
Property rights can be used for loan collateral and are ventions or prevention by elected officials will continue
assigned for consumptive and nonconsumptive uses. to promote this kind of conflict. We need transparent


 Water Resources Management

government policies covering watershed rehabilitation

and protection; reduction of NRW; the increase of tariff Water Resources Management (Problems)
levels, so that these curtail excessive demand; and in a Nutshell
regulatory bodies to see that policies are implemented.
Such policies should include measures designed to
• Watersheds are degraded—the trees have been
educate schoolchildren on the need for and the ways felled and wet season rains are lost.
and means of water conservation. And they should in-
• Groundwater is overexploited because it is free.
clude provisions stating that utilities and regulators
must create, through media, public awareness on these • Irrigation is often a wasteful use of water—both in
terms of crop types chosen and poor water delivery
matters so that to some extent positive peer pressure
mechanisms.
can come into play.
• Urban water supplies have high rates of NRW.
Computerization will help everyone involved ana- • Underpricing water does not help conservation.
lyze the effects of tariff increases on demand and fine- • There is conflict between urban and rural water
tune this relationship over time. Carefully structured users.
block tariff systems can ensure that the poor are not • Water pollution results from ineffective governance.
penalized and that demand is controlled. Gradual tariff
increases matching service improvements are best.

In the end, it will be relatively high urban water sup-

ply tariffs that put pressure on nearby irrigation sys-
tems to either greatly improve efficiencies in water use
or trade their water rights to cities. Water Resources Management (Solutions)
in a Nutshell
The recent modeling of water demand and supply
in Kathmandu Valley shows the value of comprehen-
• Water policies and social auditing are needed.
sive water resources management, which is not an
• Have long-term planning horizons.
exact science. Balancing economic, social, and envi-
ronmental concerns is very much time dependent and • Introduce demand management through
influenced by outside considerations. Creating the awareness and pricing.
Kathmandu Valley Water Authority, however, will give • Plant more trees to rehabilitate watersheds.
local governments some control over their environment • Plant crops that use much less water than do rice,
and at the same time facilitate comprehensive water cotton, and sugarcane.
resources management at arm’s length from these con- • Do not subsidize water management.
siderations. This study has highlighted the need for • Remember the triple bottom line: environmental,
constructing good databases and maintaining them social, and economic development.
over many years. • Develop rainwater harvesting in cities.
• Remember the beavers—build check dams.
More recently, the concept of managing water
• Trade customary water rights.
where it falls is being emphasized around the world,
especially in regard to rainwater harvesting, control of
storm-water runoff, and wastewater management.
There are good lessons to learn from the beavers who
gave America their wetlands by creating millions of small
dams. We should think about floods and fertility. We need
to think more about the morality of transferring water
from one river basin to another. We should share good
case studies through the Internet. We should learn from
history. And we should learn to be proactive and not re-
active in managing water.

In the years ahead we may come to judge our suc-

cess at water management by our ability to share wa-
ter equitably, to do more with less of it, and to restore
life and integrity to the earth's rivers. (Postel, 1997)