What’s Next in the Mexico-US Water Crisis? Tensions Rise as Water Joins Oil, Gas, and Critical Minerals

Web Editor

December 17, 2025

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Background on the Water Crisis in Texas and its Impact

Texas is currently facing a severe water crisis that is becoming increasingly acute. This situation will put pressure on Mexico, as Texas seeks to ration its water supply and faces serious limitations for future growth. As the second-largest economy in the United States, after California, Texas’s GDP is approximately double that of Mexico, amounting to around 2.7 trillion dollars. The state’s population grows by about 1,500 people daily.

For Texans, the water issue extends far beyond any dispute between Trump and Mexico. Locally, it’s about providing water for 15 million residents in the region and ensuring agricultural producers’ supply, which have experienced declining productivity in their fields. In 2024, water shortages caused losses of 993 million dollars, according to a study by Texas A&M University. That year also marked the closure of the last sugar mill in southern Texas, along with a significant drop in almond, citrus, and sorghum production.

Water Tensions Between Texas and Mexico

The water crisis in Texas has heightened tensions between the US and Mexico. Texans view the 1944 agreement with Mexico as outdated and in need of modernization, including clearer definitions for emergency situations that might prevent water delivery. The ongoing drought affects both sides of the border, raising questions about how to distribute the sacrifices required by water scarcity.

Texas seeks compromises from Mexico regarding water capture, usage, and reuse. They aim to modernize the 1944 agreement with more precise definitions for emergency situations and seek Mexican investments in water-related infrastructure. Meanwhile, Texas plans substantial investments; in November, they approved a 20-billion-dollar plan for water infrastructure projects over the next two decades. Half of this funding will go towards developing “new water” through desalination plants and exploring new water sources, while the other half will repair existing infrastructure, focusing on fixing leaks that cause billions of liters of water loss annually.

Mexico’s Role and Challenges

Between now and January 31, Mexico will fulfill its commitment to deliver 249 million cubic meters of water as promised. Beyond this deadline, Mexico’s actions remain undecided. The most pressing concerns are the water source and its impact on certain population and irrigation district supplies. There’s legitimate worry in Chihuahua, Coahuila, Nuevo León, and Tamaulipas. A climatic miracle to resolve the drought is unlikely; thus, efficient water usage must be prioritized.

Mexico’s National Water Commission (CONAGUA) has a budget of 36,000 million pesos for 2026, which is 4.5% less than in 2025. Despite these challenges, Mexico has a reformed Water Law that grants the National Water Commission greater authority and increased awareness of water’s importance.

Key Questions and Answers

  • What is the current water situation in Texas? Texas faces a severe water crisis, with growing concerns about rationing and limitations on future growth due to its booming population and agricultural needs.
  • How does this crisis affect Mexico? The water shortage in Texas puts pressure on Mexico to deliver committed water supplies, raising questions about sourcing and distribution impacts on specific regions.
  • What are Texas’s plans to address the crisis? Texas has approved a 20-billion-dollar plan for water infrastructure projects over the next two decades, focusing on new water sources and repairing existing infrastructure.
  • What challenges does Mexico face in addressing the crisis? Mexico must navigate budget constraints for its National Water Commission (CONAGUA) while modernizing the 1944 agreement with Texas and seeking investments in water-related infrastructure.