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.

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.

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.

In December 2002, a group of specialists on water resources from the United States and Iran met in Tunis, Tunisia, for an interacademy workshop on water resources management, conservation, and recycling. This was the fourth interacademy workshop on a variety of topics held in 2002, the first year of such workshops. Tunis was selected as the location for the workshop because the Tunisian experience in addressing water conservation issues was of interest to the participants from both the United States and Iran. This report includes the agenda for the workshop, all of the papers that were presented, and the list of site visits.

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.

In many developing countries, their governments dominate the field of water resources management. Even in “participatory irrigation management” efforts, the governments play a dominant role. As these efforts are rarely based on any internally generated demand from the water users, they usually fail to create viable organizations at the local level. A similar setback can be seen in the more recent institutional reforms in Asia’s water sector, which are promoted by the donor agencies and, national and international development professionals. A survey of experiences in Asian countries shows that no country has successfully completed establishing new water sector policies and laws and river basin organizations, as prescribed. The need to improve current performance of water resources management is widely appreciated.In managing the scarce water resources, a change in attitude and approach is seen to be essential. Participatory learning and action methods conducted in a study of selected river basins in five Asian countries surfaced a distinct need for coordination at the river basin level. They also indicated a clear stakeholder preference for establishing coordinating mechanisms, by way of adapting the existing institutions, as an initial step towards greater stakeholder control of river basin management. Essentially, cost-effective and contextually appropriate institutional arrangements were preferred over the prescribed standard models, in order to meet the varying needs related to integrated water resources management.