LIR Mexico – Water Reform in Mexico: A New Regime for the Reallocation of Rights

Our partner Brenda Rogel and associate Luis Nabani Gómez analyze in this article, published by The Legal Industry Reviews México, the decree amending the National Waters Law (Ley de Aguas Nacionales – LAN), which was published in the Official Gazette (Diario Oficial de la Federación) on December 11, 2025, and significantly reshapes the regulatory framework governing the management and administration of national waters in Mexico.

The reform introduces structural changes that directly impact the operations of concession holders, including:

• National Water Reserve Fund: This fund is composed of water volumes derived from terminated, expired, or relinquished concessions. These volumes will not be considered when calculating the availability of national waters.
• Reassignment vs. transfer: The transfer of water rights between private parties is eliminated and replaced by a reassignment framework: (i) direct reassignment, applicable in cases involving the transfer of real estate linked to concessions, mergers, spin-offs, or successions, through the issuance of a new concession title preserving the volume, use, and remaining term; (ii) reassignment subject to public interest criteria, prioritizing the human right to water, food security, and national development; and (iii) reassignment within the ejido regime, where the transfer of land or the adoption of full ownership allows the conservation of water rights for irrigation purposes.
• Supply to third parties: The article that allowed the filing of a notice with CONAGUA for the temporary supply of water to third parties is repealed. Assigning, supplying, or providing water to third parties for uses other than those authorized under the concession will now be considered an infringement.

These changes require companies and national water users to reassess the structuring of their transactions and operations. CONAGUA is expected to issue implementing regulations by mid-year, which will further develop and clarify the scope of these changes.

We invite you to read the full article to learn more about this topic (pages 80-81) (only available in Spanish) 

 If you have any questions, please contact our Environmental, Social and Governance Impact experts (see details below).