Mexico: Publication of the Bill of Law for Mexico’s General Water Law

The new Bill represents a shift in the country’s water regulation paradigm.
05 Dec 2024    2 minute read

In brief

On 12 November 2024, the Bill of Law for the General Water Law (GWL) was introduced in the Mexican Parliamentary Gazette by the ruling MORENA party. Both chambers of the Federal Congress are expected to discuss and approve the Bill in the coming months. Once approved, the GWL will repeal the current National Water Law and will lead to the amendment of other environmental regulations in the country. In its current form, the GWL has a major impact on the granting of new water concession titles and the wastewater discharge process of industrial establishments.

Contents

Key takeaways

From a business-oriented perspective, the main implications of the GWL may be summarized as follows:

  • The issuance of new water concession titles will require the submittal before CONAGUA of a "Socio-Hydric Impact Evaluation" prepared by an authorized third-party expert, such Evaluation must contain an analysis of the concession's potential impact on the social and environmental conditions in the area.
  • CONAGUA will undertake, on an annual basis, a review of existing water concession titles to determine applicable reductions to authorized volumes; the reductions may be determined on calculations of the estimated overexploitation of water.
  • Water concession titles issued by CONAGUA may only be valid for a term of between 5 and 15 years; their extension — under the same characteristics they were originally issued— may only be requested on a one-time basis for an equal period.
  • The transfer of water rights derived from a water concession title can only be requested for all of the authorized volume, and in a definitive manner; no transfers may be authorized during the initial five years of a concession title's validity. A Water Rights Transfer Center, a new organism of CONAGUA, will oversee all transfer procedures.
  • Concession holders may not transfer their treated wastewater in any way to other private parties. Untreated wastewater, and treated wastewater that is not reutilized by its authorized concession holder, will be transferred to the Water Rights Transfer Center.

In depth

If approved in its current form, the GWL will be implemented as follows: :

  • Within the three years after its publication in the Federation's Official Gazette, all water concession holders must meet with the obligations established under the GWL.
  • CONAGUA may revoke water concession titles following the first 18 months after the entry into force of the GWL, if these were granted in zones affected by water reserves, overexploitation, excessive water pollution, and other similar scenarios.

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For further information and to discuss what this development might mean for you, please get in touch with your usual Baker McKenzie contact.

Manuel Rodriguez Balleza, Law Clerk, has contributed to this legal update.

Contact Information
Federico Ruanova Guinea
Senior Counsel
Tijuana
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federico.ruanova-guinea@bakermckenzie.com
Alejandra Muriel-Vizcaino
Associate
Guadalajara
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alejandra.muriel-vizcaino@bakermckenzie.com

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