On December 11, 2025, the Decree issuing the General Water Law and amending, supplementing, and repealing various provisions of the National Water Law (the “Decree”) was published.
With the entry into force of the General Water Law (the “GWL”) on December 12, 2025, the legal framework governing water matters is redefined. Until now, this framework had been primarily regulated by the National Water Law (the “NWL”), which served as the regulatory law of Article 27 of the Mexican Constitution and which, following the reform of Article 4 of the Political Constitution of the United Mexican States, proved insufficient to fully materialize the recognition of water as a human right.
The GWL, considered a priority for the federal administration, introduces a structural shift in the management of water resources, aimed at strengthening the recognition of water as a human right, ensuring its priority use for personal and domestic consumption, and promoting equitable, efficient, and sustainable access. In this context, the new regulatory framework incorporates a stricter regulatory approach aligned with a water policy focused on the long-term preservation of the resource.
For the industrial sector, this regulatory change is particularly relevant, as the GWL expands the supervisory powers of the water authority and strengthens the sanctions regime, including the classification of water-related crimes. Consequently, it is essential for companies to remain up to date with the new regulatory obligations in order to ensure compliance and mitigate legal, operational, and reputational risks.
- Introduction
Among the most relevant aspects of the Decree is the implementation of a more rigorous concessions regime, establishing additional requirements for their granting, validity, and management. Under this new scheme, the GWL eliminates the patrimonial and commercial logic that characterized the prior regime, reinforcing State control over concessioned water volumes.
In general terms, rights derived from concessions and allocations are no longer freely transferable between private parties. Instead, the competent authority becomes the only entity empowered to reassign volumes, as applicable, through the issuance of new concession or allocation titles, in accordance with the applicable technical and legal criteria.
Additionally, the GWL strengthens the supervision and sanctions regime, including the classification of water-related crimes, significantly raising compliance standards. Likewise, the Public Registry of Water Rights is replaced by the National Water Registry, which retains its essential functions but incorporates higher standards of control, traceability, and transparency regarding concessions, allocations, and permits.
This new regulatory framework may generate significant impacts on companies in the industrial sector, particularly those whose operations depend on the availability of water resources, considering that the GWL establishes the priority of water use for human and domestic consumption over industrial and service uses. In this context, it is essential for companies to adopt risk mitigation measures, adjust their processes, and develop compliance strategies that ensure operational continuity under the current regulation.
- Background
The enactment of the General Water Law constitutes a legislative response to the mandate derived from the constitutional reform published on February 8, 2012, through which Article 4 of the Constitution was amended to recognize access to water as a fundamental human right, guaranteeing its equitable, sustainable, and safe distribution.
This decree granted the Congress of the Union a period of 360 days to enact a General Water Law to give effect to this right. However, more than twelve years after that reform, Congress has finally fulfilled this obligation, bringing to an end a prolonged legislative omission that had directly impacted the management and regulation of water in Mexico.
Under the previous legal framework, the NWL regulated water resources from a predominantly patrimonial perspective, recognizing national waters as property of the Nation pursuant to Article 27 of the Constitution, and focusing on regulating their exploitation, use, and enjoyment, as well as their preservation in terms of quantity and quality.
The explanatory statement of the GWL also indicates that its enactment responds to the worsening water crisis in Mexico, characterized by decreasing resource availability and increasing demand from the agricultural, industrial, and urban sectors. In this context, the GWL regulates Article 4 of the Constitution from a human rights-based approach, harmonizing water policy with the principles of the General Law of Ecological Balance and Environmental Protection, as well as with the objectives of the National Water Program and the 2030 Agenda for Sustainable Development.
- Main changes introduced by the General Water Law and their implications for the industrial sector
With the entry into force of this regulatory framework, significant challenges and responsibilities arise, particularly for the industrial sector and concessionaires, who will face greater obligations and stricter administrative criteria. Below are the main aspects of the GWL and their implications:
3.1 Stricter Concessions Regime
The GWL establishes a more rigorous concessions regime, including the following provisions:
- Modification or cancellation of concessioned volumes: When there is a risk to the availability of water intended for human or domestic consumption, the authority may, following a duly grounded and reasoned technical assessment, reduce or cancel concessioned volumes.
- Conditional nature of concessions: The validity of concessions, allocations, and extensions is subject to strict compliance with applicable legal, environmental, regulatory, and tax provisions, as well as the conditions established in the corresponding titles. Applications for extensions must be submitted at least six months prior to their expiration.
- Prohibition on the transfer of rights and administrative reassignment scheme: As part of the Decree enacting the General Water Law, the National Water Law was substantially amended, particularly Article 22, which now expressly provides that “the rights covered by concessions and allocations shall not be transferable.” Accordingly, the prior regime that allowed the direct assignment of concession titles between private parties is eliminated and replaced by an administrative reassignment scheme for volumes, subject to the intervention of the Water Authority.
Pursuant to Article 37 BIS 1 of the National Water Law, added by the Decree, such reassignment may only be carried out in specific cases, consisting of: (i) the transfer of ownership of a property associated with a concession title; (ii) the merger or spin-off of civil or commercial companies; and (iii) the accreditation of succession rights.
In such cases, the Water Authority will issue a new concession or allocation title, preserving the volume, authorized use, and remaining term of the reassigned title, without this constituting a direct assignment or transfer of the original title.
- National Water Reserve Fund: A Fund is created, composed, among other cases, of volumes derived from the extinction of titles. The volumes concentrated in this Fund may only be reassigned by the competent authority through the issuance of new titles, in accordance with the technical criteria and operating rules established in secondary regulations.
- Elimination of provisional water supply to third parties: As part of the amendments to the NWL accompanying the entry into force of the GWL, Article 23 Bis was repealed. This provision had allowed concession holders to provisionally supply, in whole or in part, concessioned volumes to third parties upon notice to CONAGUA. The elimination of this figure removes the legal basis for such supply schemes, increasing the risk of administrative sanctions and, in serious cases, revocation of concessions when volumes are allocated to third parties without express authorization.
Implications for the industrial sector:
i) The conditional nature of concessions implies that their validity and maintenance will be subject to periodic compliance evaluations, potentially resulting in increased administrative burdens and operating costs.
ii) Modifications to existing concessions may reduce authorized volumes.
iii) Asset sales, mergers, spin-offs, corporate restructurings, and property transfers involving national water concessions must be carefully analyzed, considering that rights derived from such concessions are not transferred but are subject to an administrative reassignment procedure. Nevertheless, in the cases expressly provided in amended Article 22 of the NWL, such transactions generate preferential rights to request the corresponding reassignment pursuant to the procedure and criteria set forth in Article 37 BIS 1, without implying an automatic or unconditional right to the issuance of a new title.
iv) Companies that invest in water-saving technologies and sustainable management will be better positioned to meet requirements, avoid sanctions, and ensure operational continuity.
3.2 Introduction of Water-Related Crimes
One of the most significant changes introduced by the GWL is the incorporation of a specific criminal regime for water-related offenses, which will be prosecuted ex officio by the Federal Public Prosecutor’s Office. This represents a substantial tightening of the compliance framework by significantly increasing the legal risks associated with improper use of national waters.
In general terms, the GWL classifies as crimes various conducts, including:
i) The intentional transportation of illegally extracted national waters for profit.
ii) Unauthorized diversion or obstruction of channels and flows of national waters that cause hydraulic damage.
iii) Acts of corruption related to the granting or management of concessions, allocations, extensions, and permits.
The penalties include prison sentences of up to fourteen years, as well as significant fines, reinforcing the need for users to adopt stricter internal controls and compliance mechanisms.
Additionally, the water criminal regime introduces direct risk for individuals, including administrators, legal representatives, executives, and personnel with decision-making authority or operational control, insofar as the criminalized conduct may be attributed by action or omission in the performance of their duties. This underscores the need to clearly delineate internal responsibilities and strengthen corporate oversight and control mechanisms.
Implications for the industrial sector:
i) Increased criminal and sanctions risk: The introduction of water-related crimes exposes companies to criminal liability, high fines, and potential operational impacts arising from improper use of national waters.
ii) Greater control and traceability requirements: Companies must strengthen internal controls, ensure the legality of the origin, transport, and use of water, and maintain strict management of concessions, permits, and authorized volumes.
iii) Need for robust compliance programs: It is essential to implement water and anti-corruption compliance programs, train key personnel, and conduct periodic audits to mitigate risks, avoid sanctions, and ensure operational continuity under the new Law.
iv) The ex officio prosecution of water-related crimes and the possibility of criminal investigations parallel to administrative proceedings increase reputational risk for companies, as well as the possibility of temporary suspensions, seizures, or operational restrictions that may affect business continuity even before a final resolution is issued.
3.3 Promotion of Wastewater Reuse
The General Water Law strengthens the promotion of wastewater reuse, empowering CONAGUA to regulate and supervise the use of treated and, where applicable, untreated waters, in accordance with principles of sustainability, environmental protection, and water responsibility.
For companies, this change entails a higher level of technical and regulatory compliance, particularly with respect to applicable Official Mexican Standards governing wastewater treatment and discharge, including NOM-001-SEMARNAT-2021 and NOM-002-SEMARNAT-1996.
The GWL also promotes a framework under which the reuse of treated water may become mandatory in certain sectors or incentivized based on efficiency criteria, requiring for the granting or renewal of concessions and discharge permits, the submission of technical analyses of receiving water bodies and compliance with best water management practices, with the aim of promoting rational and sustainable use of the resource.
Implications for the industrial sector:
i) Greater technical obligations and investment: Companies will need to adapt or strengthen their treatment, monitoring, and reuse systems to comply with Official Mexican Standards and the new criteria established by CONAGUA, potentially requiring additional investment in infrastructure, technology, and operations.
ii) Condition for permits and operational continuity: In certain sectors, reuse of treated water may become a requirement for granting or renewing concessions and discharge permits, making timely compliance critical to mitigating regulatory risks and ensuring the continuity of industrial operations.
4. Implications of the entry into force of the new water regulation
The entry into force of the GWL generates a series of effects with both positive and challenging implications. Some of the most relevant scenarios arising from its application include:
4.1 Strengthening the protection of water as a human right: Protection of water as a human right is strengthened, ensuring its priority use for human and domestic consumption in compliance with Article 4 of the Constitution. In addition, the GWL establishes specific strategies to prevent drought crises at the national level, including the revaluation of water resources in regions facing greater scarcity.
4.2 Allocation of broad supervisory and enforcement powers to the authority: The supervisory and sanctioning powers of the water authority are significantly expanded, allowing for more frequent inspections, technical audits, and continuous monitoring of regulatory compliance. Sanctions will include high fines, temporary suspension of activities, and, in the most serious cases, definitive revocation of concessions. Additionally, the classification of water-related crimes introduces criminal penalties, including imprisonment in severe cases, fostering greater responsibility in water management and use.
4.3 Restructuring of concession guidelines: This new scheme reinforces state control over concessioned volumes, eliminates the direct transfer of rights between private parties, and subjects the validity, extension, and reassignment of concessions to strict compliance with legal, environmental, and administrative obligations. Consequently, concessions cease to operate as transferable assets in a patrimonial sense and are instead conceived as conditional administrative titles, whose continuity depends on regulatory compliance, resource availability, and the discretionary evaluation of the authority, even in cases that generate preferential rights to request reassignment.
4.4 Regulatory transition scenario and operational adjustments: Implementation of the new regulatory framework requires companies to make gradual adjustments to their processes, authorizations, and compliance schemes to align with the provisions of the General Water Law, which may result in temporary delays in administrative procedures and ongoing projects. However, adopting planning and mitigation strategies, such as investing in water efficiency technologies, using alternative sources, and diversifying water management, will help reduce risks, strengthen compliance, and ensure operational continuity during this transition period.
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- Recommendations for timely compliance under the new General Water Law
The new General Water Law represents a structural transformation in water resource management in Mexico. In this context, and in order to minimize regulatory risks and ensure sustainability and operational continuity, companies are advised to adopt the following compliance and adaptation measures:
5.1 Regulatory monitoring: Implement continuous monitoring of the issuance of regulations and secondary provisions derived from the General Water Law, which must be published within a maximum period of 180 calendar days from its entry into force and will define specific compliance guidelines. This monitoring will allow timely identification of regulatory changes, assessment of their operational impact, and prompt implementation of necessary adjustments to ensure alignment with the new regulatory framework.
It is important to consider that ongoing procedures must be resolved in accordance with the regulations in force at the time they were initiated. Likewise, during the period prior to the issuance of secondary regulations, the provisions of the NWL will continue to apply insofar as they do not contravene the new GWL.
5.2 Corporate preparedness: Train key personnel, strengthen internal water management policies, and adopt best practices, such as water efficiency programs and the use of technologies for optimization and reuse of the resource, to reinforce an organizational culture oriented toward regulatory compliance and sustainability.
5.3 Review of current concessions and permits to assess compliance status: Conduct a comprehensive review of existing concessions and permits to verify compliance with applicable obligations, including the operation of treatment plants and water management systems, as well as to timely identify the need to request extensions, which must be processed at least six months prior to expiration; maintain adequate monitoring of their validity; and carry out necessary updates under the new regulatory framework.
5.4 Monitoring of utilized water bodies to ensure availability: It is essential for companies to implement continuous monitoring systems for the water bodies they use, verifying availability, quality, and quantity in alignment with the new regulations. This will allow them to anticipate potential restrictions and take preventive measures, such as diversifying water sources or investing in treatment and reuse technologies, ensuring sustainable long-term water management.
5.5 Legal and transactional planning: Incorporate water-related analysis as a cross-cutting element in investment planning, expansion projects, financings, acquisitions, and corporate restructurings, conducting water due diligence processes that consider the conditional nature of concessions, the risks of modification or reduction of volumes, and the administrative reassignment procedures applicable under the new regulatory framework.
Conclusion
The General Water Law introduces a significantly stricter regulatory framework that redefines water resource management in Mexico and poses relevant challenges for water users, particularly the industrial sector. The new provisions on concessions, centralized reassignment of volumes, the tightening of obligations applicable to wastewater discharges, and the incorporation of a more severe sanctions and criminal regime require companies to immediately and strategically adjust their compliance schemes in order to avoid legal, administrative, and operational contingencies.
At the same time, this new regulatory model aims to strengthen the protection of the human right to water, ensure its priority use for personal and domestic consumption, and establish legal and institutional tools to address the country’s water crisis, promoting more equitable, efficient, and sustainable management of water resources.
In this context, it is essential for companies to adopt comprehensive compliance and water management strategies, strengthen internal controls, proactively review the status of their concessions and permits, and invest in efficiency, treatment, and water reuse technologies to mitigate regulatory risks, ensure timely compliance with the new legal framework, and guarantee the continuity and sustainability of their operations under the General Water Law.
Bibliography
- Diario Oficial de la Federación 2025. “Decreto por el que se expide la Ley General de Aguas y, se reforman, adicionan y derogan diversas disposiciones de la Ley de Aguas Nacionales”. Accesed at: https://www.dof.gob.mx/nota_detalle.php?codigo=5775799&fecha=11/12/2025
Contact
Berenice Soto García
bsoto@cuestacampos.com
Héctor Ceballos González
hceballos@cuestacampos.com
THE ABOVE IS PROVIDED AS GENERAL INFORMATION PREPARED BY PROFESSIONALS WITH REGARD TO THE SUBJECT MATTER. THIS DOCUMENT ONLY REFERS TO THE APPLICABLE LAW IN MEXICO. WHILE EVERY EFFORT HAS BEEN MADE TO ENSURE ACCURACY, NO RESPONSIBILITY CAN BE ACCEPTED FOR ERRORS OR OMISSIONS. THE INFORMATION CONTAINED HEREIN SHOULD NOT BE RELIED ON AS LEGAL, ACCOUNTING OR PROFESSIONAL ADVICE BEING RENDERED.
