What the evidence says about governing water well

Most water crises are governance crises before they are engineering crises. This page brings together the key numbers, frameworks and regulatory deadlines behind our tools. Each item ends with a "so what" for boards and civic groups, and every figure links to its source.

The scale of the governance gap

2.1 billion people (1 in 4) still lacked safely managed drinking water in 2024, including 106 million drinking untreated surface water. WHO/UNICEF JMP, Aug 2025
126 bn m³ of treated water lost or unbilled each year worldwide (non-revenue water), worth about US$39 billion. Liemberger & Wyatt, 2019
US$75 bn+ potentially lost each year if 10% of water-sector investment leaks to corruption. This is an estimate, not a measurement. Water Integrity Network, WIGO 2016
72% → 6% Phnom Penh's non-revenue water, 1993 to the late 2000s, mainly through governance and management reform. World Bank PPIAF case study · case study
3.4 billion people lacked safely managed sanitation in 2024, including 354 million practising open defecation. WHO/UNICEF JMP 2025 · sanitation page
≈ US$114 bn a year in capital alone to reach SDG targets 6.1 and 6.2, about three times recent investment levels. A modelled estimate. Hutton & Varughese, World Bank 2016

The 12 OECD Principles on Water Governance (2015)

The OECD groups good water governance into three mutually reinforcing dimensions. Effectiveness means clear goals and the right actors at the right scale. Efficiency means getting the most value from data, money and rules. Trust and engagement means integrity, inclusion and fairness. Our tools map onto all twelve.

#PrincipleDimensionQuestion a board can askOur tool
1Clear roles & responsibilitiesEffectivenessWho sets policy, regulates, operates, pays — on one page?Self-check
2Appropriate scales within basin systemsEffectivenessDo we co-ordinate with everyone who shares our sources?Assessment
3Policy coherenceEffectivenessDo land-use, energy and farm policies help or hurt water?Assessment
4CapacityEffectivenessDo we have the skills to manage assets and contracts?Assessment
5Data & informationEfficiencyIs there a published annual water balance?NRW & ILI
6FinancingEfficiencyIs revenue ring-fenced and renewal funded?Budget questions
7Regulatory frameworksEfficiencyWho independently checks tariffs and performance?Agenda
8Innovative governanceEfficiencyWhat did we pilot, and was it evaluated?Assessment
9Integrity & transparencyTrust & engagementAre contract awards and variations public?Red flags
10Stakeholder engagementTrust & engagementDid users see the options before the decision?Agenda
11Trade-offs across users, areas & generationsTrust & engagementCan low-income households pay? Who's served first?Affordability
12Monitoring & evaluationTrust & engagementAre decisions logged and reviewed?Decision log

Score your system on all 12 →

Water losses: why the percentage misleads, and what to use instead

The IWA water balance

The International Water Association's standard balance splits system input into billed and unbilled authorised use, apparent losses (meter error, billing errors, theft) and real losses (leaks, bursts, tank overflows). Apparent losses cost revenue; real losses cost water, energy and chemicals.

So what: ask for the four-way split, not one "loss %".

Why "% lost" can mislead

NRW as a percentage falls when consumption rises and rises when people save water, even if no pipe has changed. It also penalises systems with low per-capita use.

So what: track real losses in litres per connection per day, or m³ per km of mains per day.

Infrastructure Leakage Index (ILI)

ILI = current annual real losses ÷ unavoidable annual real losses (UARL). The standard UARL formula is (18 × km mains + 0.8 × connections + 25 × km private service pipe) × average pressure in metres, in litres/day. An ILI of 1.0 is the technical minimum.

So what: the calculator now computes ILI and the World Bank Institute band.

Recovering losses pays back

Liemberger & Wyatt estimate that reducing global NRW by one third would save around US$13 billion a year. They put realistic payback at about 7–10 years.

So what: loss reduction belongs in the capital plan, not only the maintenance budget.

EU leakage obligations

Under the recast Drinking Water Directive (Art. 4(3)), Member States had to assess leakage, using ILI or another suitable method, for large suppliers (≥10,000 m³/day or ≥50,000 people) and report by 12 January 2026. The Commission must set an EU leakage threshold by 12 January 2028. Countries above it will need action plans.

So what: EU utilities should have an ILI figure now. Ask to see it.

Pressure is the cheapest lever

Leak flow rises with pressure, and so does burst frequency. That's why the UARL formula scales with pressure. Pressure management by district metered area (DMA) is often the fastest, cheapest way to cut real losses.

So what: ask what share of the network is in DMAs with managed pressure.

Integrity risks cluster where money and discretion meet

Procurement and capital works

The Water Integrity Network's 2016 outlook argues that every 10% of investment lost to corruption costs over US$75 billion a year worldwide. It cites a 2015 audit of a Benin water programme that found €4 million unaccounted for out of €70 million.

So what: screen tenders and contract variations with the 16 red flags.

Petty corruption at the meter

Illegal connections, bribes to skip disconnection and manipulated meter readings show up as apparent losses. Phnom Penh's turnaround began by tackling these directly.

So what: a large apparent-loss share is an integrity signal, not only a technical one.

When accountability is suspended

In Flint, Michigan, state-appointed emergency managers took over local decision-making. The 2014 source switch went ahead without corrosion control, and the city council's 2015 vote to switch back was non-binding.

So what: protect public oversight, especially under fiscal stress. See the case study.

Compliance needs an independent enforcer

After a 2017 television investigation alleged water theft in Australia's Barwon–Darling, New South Wales moved enforcement to a new independent regulator, operating from April 2018.

So what: the body that promotes water use shouldn't be the only one that polices it. See the Murray–Darling case.

Ageing pipes and the financing gap

Renewal rates are far too low in many places

Austria's Court of Audit found about 0.3% of the drinking-water network renewed per year, against roughly 2% needed to preserve its value. EurEau's 2025 statistics name renewal as the top concern of Europe's water services.

So what: ask for the renewal rate as a share of the network, and compare it with the expected service life. Use the renewal gap calculator.

The global investment gap

A World Bank study estimated capital needs of about US$114 billion a year to reach universal safely managed water and sanitation (SDG 6.1 and 6.2), roughly three times recent investment. Operating and maintenance costs come on top.

So what: new connections without funded maintenance create tomorrow's failures.

Tariffs, taxes and transfers

The OECD's "3Ts" framework says services are paid for by some mix of user tariffs, public budgets and transfers such as grants. Problems start when nobody decides the mix openly.

So what: ask which of the three pays for renewal, and whether that is written down.

Collection failures become asset failures

In Jackson, Mississippi, a failed metering and billing contract cut revenue for years before the 2022 treatment-plant crisis left more than 150,000 people without safe water.

So what: treat billing systems as critical infrastructure. See the Jackson case.

The other half of the water cycle

The biggest access gap

In 2024, 3.4 billion people lacked safely managed sanitation and 1.7 billion lacked basic hygiene at home, according to the WHO/UNICEF Joint Monitoring Programme.

So what: sanitation plans need the same governance attention as drinking water.

Data drives accountability

England's near-complete monitoring of storm overflows showed 450,398 spills lasting 3.61 million hours in 2024, and helped trigger a review that recommended replacing the economic regulator.

So what: publish spill data for every overflow. See the England case.

New EU wastewater rules

The recast Urban Wastewater Treatment Directive (2024/3019) extends treatment to towns of 1,000 p.e., adds micropollutant removal for large plants by 2045, and makes pharmaceutical and cosmetics producers pay at least 80% of that extra cost.

So what: transposition is due by 31 July 2027; start the gap analysis now. See the obligations table.

Sharing water when there isn't enough

A published deadline changes behaviour

Cape Town said most taps would be turned off if its major dams fell to 13.5%. Regularly updated "Day Zero" forecasts, restrictions and pressure management helped cut daily use by more than half between 2015 and 2018.

So what: agree trigger levels and a public forecast before a drought. Try the drought runway calculator.

Basins don't follow borders

OECD principle 2 asks for decisions at the scale of the catchment or aquifer. The EU Water Framework Directive (2000) requires river basin management plans for the same reason.

So what: know who else draws on your sources, and what you have agreed with them.

Caps need meters

Australia's Murray–Darling Basin Plan (2012) set sustainable limits on extraction and a baseline target to recover 2,750 GL a year for the environment. Its legitimacy has depended on metering and enforcement.

So what: no allocation rule is fair if extraction isn't measured.

Elected, dedicated water authorities

The Dutch water boards, the oldest founded in the 13th century, are elected every four years and levy their own taxes for flood protection, water levels and wastewater treatment.

So what: long-term water tasks need protected revenue and visible oversight. See the case.

Key frameworks and deadlines

  1. 2000

    IWA standard water balance and performance indicators published, the basis for comparing water losses internationally.

  2. 2002

    UN General Comment No. 15: water must be sufficient, safe, acceptable, physically accessible and affordable.

  3. 2010

    UN General Assembly resolution 64/292 recognises the human right to safe drinking water and sanitation.

  4. 2015

    OECD Principles on Water Governance and SDG 6 (clean water and sanitation for all by 2030) adopted.

  5. 2016

    OECD Council Recommendation on Water integrates the governance principles. Water Integrity Network publishes its first Global Outlook.

  6. 2020

    Recast EU Drinking Water Directive (2020/2184) adds risk-based safety planning, leakage assessment and access-to-water duties.

  7. 2024

    Recast EU Urban Wastewater Treatment Directive (2024/3019) adds energy neutrality goals and extended producer responsibility for micropollutant removal.

  8. 2025

    July: England's Independent Water Commission makes 88 recommendations; the UK government announces Ofwat will be abolished.

  9. 2026

    12 January: EU Member States' leakage assessments due to the Commission. 20 January: UK White Paper A New Vision for Water sets out a single new water regulator for England.

  10. 2027

    31 July: Member States must transpose the recast Urban Wastewater Treatment Directive into national law.

  11. 2028

    By 12 January: Commission to set an EU leakage threshold by delegated act. Countries above it will need action plans.

  12. 2030

    SDG 6 deadline. On current trends, universal safely managed drinking water and sanitation will not be reached.

  13. 2033

    Integrated urban wastewater management plans due for EU agglomerations above 100,000 p.e.

  14. 2045

    Quaternary treatment for large EU plants (150,000 p.e. and above) and energy neutrality for plants of 10,000 p.e. and above.

Where these figures come from

  1. WHO & UNICEF Joint Monitoring Programme (2025). Progress on household drinking-water, sanitation and hygiene 2000–2024: special focus on inequalities. WHO news release
  2. Liemberger, R. & Wyatt, A. (2019). Quantifying the global non-revenue water problem. Water Supply 19(3). Summary: The Source (IWA)
  3. Water Integrity Network (2016). Water Integrity Global Outlook 2016. Transparency International summary
  4. OECD (2015). OECD Principles on Water Governance. oecd.org
  5. Directive (EU) 2020/2184 on the quality of water intended for human consumption (recast), Art. 4(3) and Art. 16. EUR-Lex
  6. IWA Water Loss Specialist Group (2022). Position statement on the use of the Infrastructure Leakage Index in EU directives and regulations. iwa-network.org
  7. World Bank / PPIAF. Phnom Penh: an exemplary water utility in Asia. PDF
  8. UN General Assembly resolution 64/292 (2010); UN CESCR General Comment No. 15 (2002).
  9. Lambert, A. et al. (1999). A review of performance indicators for real losses from water supply systems. AQUA 48(6) (UARL and ILI method).
  10. Hutton, G. & Varughese, M. (2016). The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene. World Bank Water and Sanitation Program. Some summaries give US$112 billion. World Bank Open Knowledge
  11. Rechnungshof Österreich (Austrian Court of Audit). Renewal needs for drinking-water and sewer networks. rechnungshof.gv.at
  12. EurEau (2025). Europe's Water in Figures: snapshot 2025. PDF
  13. Environment Agency (27 March 2025). Storm overflow spill data for 2024. gov.uk
  14. Independent Water Commission (21 July 2025). Final report; UK Government, Ofwat to be abolished. gov.uk
  15. Defra (20 January 2026). A New Vision for Water (White Paper).
  16. Directive (EU) 2024/3019 concerning urban wastewater treatment (recast). EUR-Lex summary
  17. Murray–Darling Basin Authority. Basin Plan (2012); NSW Natural Resources Access Regulator Regulation 2018. NSW legislation
  18. Danish Environmental Protection Agency. Preventing water loss. eng.mst.dk