Resolving these problems is crucial for the future.

Effective water governance capacity is the foundation of efficient management of water resources. Water governance reform processes must work towards building capacity in a cohesive and articulated approach that links national policies, laws and institutions, within an enabling environment that allows for their implementation. This guide shows how national water reform processes can deliver good water governance, by focussing on the principles and practice of reform. RULE guides managers and decision makers on a journey which provides an overview of what makes good law, policy and institutions, and the steps needed to build a coherent and fully operational water governance structure.

“There is more than enough water in the world for domestic purposes, for agriculture and for industry. (...) In short, scarcity is manufactured through political processes and institutions (...). ” (United Nations Human Development Report 2006: 3) Water scarcity, water crisis, water wars – since the beginning of the 1990s these terms have appeared again and again in scientific debates, political strategies, and media reports. Water is perceived as a scarce resource that needs efficient management in order to satisfy all needs and to prevent violent conflicts over its distribution. Considerable research has been devoted to this topic. In this research, water is commonly referred to as a common pool resource: a n- excludable public good with rivalry in terms of consumption. Hence, research has long focused on collective action problems in managing this common pool resource (e. g. Ostrom 1990, 1992). In recent years, anthropological and sociological scholars in particular have criticized that in these studies the complexity of water, its embeddedness in a wider cultural and social c- text, and the role of power have been neglected. Water is different from other natural - sources in some important aspects: its mobility, its variability, and its multiplicity (Mehta 2006: 2f; Linton 2006: [10]). Mobility makes ownership claims difficult: Water moves, transcending state borders, not fixed like other resources. Variability refers to the fact that its availability varies temporarily, depending on weather conditions.

This publication examines issues of water sector reform and performance from the perspectives of institutional economics and political economic studies. The authors develop an alternative quantitative assessment methodology based on the principle of 'institutional ecology', as well as data collected from 127 water experts from 43 countries and regions around the world using a cross-country review of recent water sector reforms within an institutional transaction cost framework.

Case studies were conducted in five selected Asian countries on their water policy reform initiatives. Of the five countries, China stands out as the country that has derived the most from on-going global efforts in promoting water sector institutional reforms and the concept of integrated water resources management (IWRM). China has emerged as the leader in adapting these concepts to suit the context of the country. Advanced stages of water development in many parts of the country and increased water shortages due to rapid economic development have prompted China to forge ahead in the search for institutional solutions to make the water sector more productive, and the management of water resources more sustainable. In the other selected countries, efforts to replicate the models of developed countries without much adaptation and due reference to their stages of development have generally failed. The dominance of irrigation within the water sector and the informality of the economy related to water in these countries seem to make the application of prescribed IWRM principles rather unfeasible. The lesson to be drawn from policy reviews of the five countries is that effective waterinstitutions are not static systems, but are adaptive and dynamic institutional developments compatible with the local context, particularly with the structure of the overall economy of the country and its water sector.

India's irrigated agriculture sector has been basic to India's economic development and poverty alleviation. One of India's major achievements is its rapid expansion of irrigation and drainage infrastructure. However, the major emphasis on development has been achieved at a cost. The importance put on new construction has diverted attention away from the need to ensure the quality, productivity, and sustainability of the services. Further, a governmental subsidy based approach has been used and this has resulted in irrigation and drainage services which, while enabling significantly higher productivity than from non-irrigated lands, are well below their potential. 'The Irrigation Sector' discusses directions for future growth, the framework for reform, and the reform agenda.

The lack of sufficient access to clean water is a common problem faced by communities, efforts to alleviate poverty and gender inequality and improve economic growth in developing countries. While reforms have been implemented to manage water resources, these have taken little notice of how people use and manage their water and have had limited effect at the ground level. On the other hand, regulations developed within communities are livelihood-oriented and provide incentives for collective action but they can also be hierarchal, enforcing power and gender inequalities. This book shows how bringing together the strengths of community-based laws rooted in user participation and the formalized legal systems of the public sector, water management regimes will be more able to reach their goals.