Thadine writes*
Chile has been identified as one of the twenty-five countries most impacted by climate change. The country has been experiencing its longest and most severe drought in recorded history, possibly the worst in a millennium. Apart from the drought, several other climate-related events have further exacerbated water availability and quality issues. These include mudslides, increased turbidity, extended supply cuts due to pollution, and sewage discharge into lakes during periods of heavy rainfall.
By the end of 2021, more than half of the population (around 8,5 million people) lived in areas suffering from severe water scarcity. It is expected that the water availability in northern and central Chile will be halved by 2060.
Santiago de Chile, the capital and largest city, has 7 million inhabitants, of which 90% get their water supply and sanitation from the private company Aguas Andinas. Article 5 of Chile’s 1981 Water Code (“Código de Aguas”) says that water is public property. The Water Code was implemented under the military regime led by General Pinochet. This document, following the principles of neoliberalism, resulted in a “law which introduced a system of private water rights that could be traded in free markets with almost no government regulation.” A significant challenge facing markets for Water Use Rights (WURs) is finding a balance between optimal water usage and the long-term health of rivers and aquifers.
The Maipo river and its basin are responsible for 85% of the total water production for Santiago. Hydroelectricity, copper production, tourism, recreational activities and agriculture also consume the water provided by the Maipo River basin. However, the Maipo river is severely affected by the changing climate and ongoing over-extraction. Extreme weather has increased erosion and thus worsened turbidity in the Maipo. Climate change could reduce annual flow in the Maipo by 10% to 40%, which could lead to a crisis for users.
To mitigate and adapt to these challenges, the Superintendence of Sanitary Services (Superintendencía de Servicios Santiarios – SISS) – Chile’s urban water utilities regulator –initiated a participatory process in 2017, involving over 700 participants from various sectors and regions. This collaboration resulted in the 2030 Water and Sanitation Agenda, a comprehensive plan that identifies challenges, solutions, and a roadmap for addressing the country’s water issues over the next decade.
Bottom line: Santiago’s water supply is threatened by climate change, over-extraction, and extreme weather.
* Please help my Water Scarcity students by commenting on unclear analysis, alternative perspectives, better data sources, or maybe just saying something nice 🙂
Hi Thadine, thank you for your interesting blog post. The system to trade private water rights is in place and came from the time of a military regime, so do you know how effective this market has been to distribute water to those in need? Also, how is it incorporated in the 2030 Water and Sanitation Agenda? Are there any types of reforms underway that would fundamentally change this market or even plans to disband it? I just find it really interesting to see if and how this water market works and if it will continue in the future.