Availability and use

Water availability varies greatly, with South America being the richest sub-region. Some countries suffer from water shortages, and loss of aquatic biodiversity and habitats, with some Caribbean islands approaching or below water scarcity levels (WWC 2000). Sharp differences also exist within countries.

In most Caribbean small island states, rainfall is the sole source of freshwater (Antigua and Barbuda, the Bahamas and Barbados use desalinated water). In South America, groundwater reserves are of great importance and are estimated at 3 million km³ (GWP 2000). Mexico is particularly dependent on groundwater, which accounts for one-third of all reported freshwater extraction and for two-thirds of urban drinking water (CATHALAC 1999, WWC 1999).

Water availability in 2000 (1 000 m3 per capita/year)

Map shows water availability measured in terms of 1 000 m3 per capita/ year Source: compiled from UNDP, UNEP, World Bank and WRI 2000 and United Nations Population Division 2001

Industry also uses large amounts of water. In South America, it is estimated that annual industrial withdrawals reach 15 km³ with 80 per cent of this demand coming from Argentina and Brazil alone (ACAA 2001). In Brazil, virtually all the country's electricity comes from hydropower. The mining sector, especially in Chile and Peru, requires increasing quantities of water. For some regions such as the Andes, this may well lead to the need to import water in the near future. In Venezuela and Trinidad and Tobago, the petroleum sector is an important consumer.

The demand for water for domestic use is also on the increase. However, inequity among users, even in water-rich countries, is rampant. Many of the poor in both rural areas and urban communities have neither access to clean water nor sanitation services (WWC 2000). In 1995, 27 per cent of the population had either no domestic water supply or no easy access to it. In the same year, 41 per cent of the water was untreated and 31 per cent of the population had no sewage services (PAHO 1998). By 2000, 85 per cent of the population had an improved water supply and 78 per cent had improved sanitation coverage - but this still meant that 78 million people had no access to improved water supply and 117 million had no access to improved sanitation services (WHO and UNICEF 2000). Large disparities also exist between rural and urban areas. Natural disasters provide an additional, unexpected factor that can seriously undermine efforts to improve water and sanitation services.

'In 1998, Hurricane Mitch caused US$58 million of damage in Honduras alone. The devastation included the destruction of 85 000 latrines and 1 683 rural water mains. As a result, 75 per cent of the population - about 4.5 million people - lost access to drinking water. Devastation such as that caused by Hurricane Mitch may last for months or even years.' - WHO and UNICEF 2000

Attempts have been made to improve water supply and sanitation in many urban areas and to set tariffs that reflect the real value of water. Although the efficiency of privatization and the use of economic instruments such as water pricing remain highly contentious (WWC 2000), some countries, such as Jamaica, have started using economic instruments (UNECLAC 2000).

Limited information on water utility infrastructure and operation is a major constraint in government efforts to improve regulations related to the urban water sector. While the role of governments has shifted from provider of a water service to regulator representing the public, many governments still do not have sufficient information on water utility operation, and this limits their regulatory functions. Although the rate of technological change in the water sector is generally slower than in other sectors, the need to transfer technology is critical to efforts to save water and introduce improved control strategies.

To increase the efficiency of the sanitation sector, as well as to attract capital, national and international initiatives have been suggested, including the creation of local or regional markets such as the Guarani Aquifer project (see box below). In Brazil, there have been notable advances in legislation, especially with a 1997 federal law that put in place a national water resources policy and established a national water resources management system.