Mexico’s Government to Introduce Reforms to Curb Illegal Water Market and Strengthen Penalties

Web Editor

September 24, 2025

a collage of photos with a man and a fire hydrant and a man with a bucket of water, Constant Permeke

Background on the Issue

Mexico’s water resources have long been a subject of concern due to the burgeoning illegal water market. This issue has gained prominence as water scarcity becomes increasingly pressing, especially in the face of climate change and population growth. The current situation has led to the Mexican government announcing significant reforms aimed at addressing this problem.

Key Proposed Reforms

The Mexican government, led by President Claudia Sheinbaum, plans to present two crucial water-related initiatives to Congress. These include a constitutional reform to secure the human right to water and amendments to the National Water Law alongside a new General Water Law.

  • Constitutional Reform: The reform aims to enshrine the human right to water in Mexico’s constitution, ensuring equitable access for all citizens.
  • National Water Law Amendments: These changes will strengthen the Comisión Nacional del Agua (CONAGUA) and impose stricter penalties on those exploiting water resources illegally.
  • New General Water Law: This law will establish a new framework for water management and regulation.

Addressing the Illegal Water Market

Efraín Morales López, CONAGUA’s general director, explained that the proposed reforms emerged from a consultation process involving 13 forums with various social, productive, and governmental sectors. The reforms aim to eliminate the possibility of private water right transfers, which has led to unregulated water trading.

The reforms also introduce a chapter on “water crimes,” imposing harsher penalties for illegal water theft, unauthorized well drilling, and recidivism in illicit practices such as selling water from clandestine sources.

Strengthening Penalties and Regulations

Óscar Zavala Gamboa, CONAGUA’s legal director, highlighted that the current fines for violating the National Water Law range from 260 to 26,000 UMAS (approximately $13,000 USD). However, these penalties are often too lenient, allowing offenders to pay the fine and continue their illegal activities.

To address this, the proposed reforms aim to raise the minimum fine to 50,000 UMAS and establish a catalog of specialized offenses within the law to close legal loopholes.

President Sheinbaum’s Perspective

President Claudia Sheinbaum emphasized that the illegal water market practice began during Carlos Salinas de Gortari’s presidency. The proposed legal changes aim to reverse this trend, asserting that water should not be treated as a commodity but rather as a scarce resource regulated by the nation.

Furthermore, Sheinbaum explained that the reforms will simplify procedures for small-scale farmers with private wells, allowing them to regularize their concessions more easily and access electricity subsidies for irrigation.

Key Questions and Answers

  • What is the main objective of these reforms? The primary goal is to curb the illegal water market, strengthen CONAGUA, and impose stricter penalties on those exploiting water resources illegally.
  • Who proposed these reforms, and when? The proposals emerged from a consultation process involving various sectors, and the Mexican government, led by President Claudia Sheinbaum, will present them to Congress.
  • What changes are being proposed to the National Water Law? The reforms aim to eliminate private water right transfers, introduce a chapter on “water crimes,” and raise minimum fines for violations.
  • How will these reforms impact small-scale farmers? The changes will simplify procedures for small-scale farmers with private wells, enabling them to regularize their concessions more easily and access electricity subsidies for irrigation.