Integrating water charges policies and watershed plans for improved investment and financial sustainability in water resources management

ABSTRACT

This paper proposes a dual-feedback process that links watershed plan actions with raw water charges. A dedicated decision support model is created to implement this process and allow long-term financial sustainability analysis. The model offers real-time analysis of various watershed actions using customizable prioritization criteria integrated with different water pricing configurations, including user-polluter pays and beneficiary-pays principles, as well as other funding sources. Application to the Piracicaba–Capiravi–Jundiaí Basins in Brazil shows how important water management and water quality improving actions can be funded through water charges and how finance gaps can be resolved through a shared Vision Modelling approach.

KEYWORDS:

• Raw water charges
• river Basin plans
• finance sustainability
• water management
• PCJ Basins
• Brazil

Acknowledgements

The authors thank the World Bank Water Resources Group – WRG2030, for support to this work.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Author contributions

Development of the core idea: GFM, RMF, PL, SG, IB; proposal of modeling framework: GFM, RMF, PL, SG; development of modeling framework: GFM, IP; model execution: GFM, APD; results analysis: GFM, RMF, PL, APD, SG, IB, IP; manuscript writing: GFM, RMF, PL; manuscript revision: APD, SG, IB, IP.

Notes

1. Watershed committees are decision-making bodies for IWRM with representatives from government authorities, municipalities, users, and civil society.