Water resources in many parts of Mexico are under stress, especially in the arid northwest and central regions where most of the population lives and most of the economic activities are located. The country has put in place a system of water resources management that includes both central (federal) and decentralized (basin and local) institutions.Despite many achievements, the water resources sector in Mexico still faces some challenges, including: (i) increasing water scarcity, (ii) over-exploitation of freshwater resources, especially groundwater, (ii) deteriorating water quality, (iii) lack of financial sustainability of the water sector, (iv) modernizing water supply and sanitation services, (v) improve competitiveness and efficiency of irrigation, (vi) strengthen water institutions, (vii) adapt to climate change impacts, especially droughts and floods.