Mexico | Drop by Drop: Understanding Water Management Across the Country

Summary

The report examines water management in Mexico and the diversity of its water utilities. Nationwide, only 55% of the water supplied is billed, and 69% of billed amounts are ultimately collected. Although drought conditions improved in 2026, critical challenges remain in water metering and wastewater treatment.

Key points

• Key points:
• Residential water connections account for 60.8% of water utilities' revenue, yet only 53.3% of these connections are equipped with water meters, highlighting an opportunity to improve billing accuracy and revenue collection.
• Nationwide, only 5.6% of business establishments treat their wastewater. Among those that do, just 13.0% reuse the treated water in their own production processes.
• Manufacturing industries reported the highest total water expenditure, reaching MXN 38.886 billion in 2023. Notably, 20.3% of companies in this sector treat their wastewater, the highest share among all sectors nationwide.
• The average price of water in Mexico is MXN 8.55 per cubic meter, with significant regional variation, ranging from MXN 17.63 in Mexico City to MXN 2.57 in Tabasco.
• As of June 30, 2026, only 13% of municipalities in Mexico reported drought impacts, a substantial improvement compared with 85% in 2024. Nevertheless, an intense El Niño event is forecast for 2026–2027, which is expected to heighten the country's water availability risks once again.

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