Who might participate?

Who might participate in a Water Fund?

1. Urban Leaders

   Urban leaders should take a full inventory of the economic benefits that would accrue to the city through source water protection. These would include reduced water supply operation and maintenance costs and potential avoidance of capital infrastructure and other co-benefits such as climate change mitigation and the conservation of biodiversity and open spaces that have significant positive impacts. City administrations are the most natural participants in the water fund platform, and through policy design, can help intermediate water tariffs, taxes or transfers into cash flows that could support long-term payments to source water protection and help finance interventions.

2. National Leaders

   National leaders should explore how a source water protection portfolio can optimize multiple goals and public investment. In particular, countries may be able to meet a portion of national climate, biodiversity and Sustainable Development Goal targets through source water protection efforts that also address regional economic development goals and support water security for municipalities.

3. Public and Private Financiers and Donors

   Public and private financiers and donors are critical as we move from innovation to expansion of Water Funds. Getting the science and tools to a local scale is essential. Investing in landscape assessments and Water Fund feasibility studies is a key gap. Ultimately, the scale-up of water funds will also require their development as financial vehicles that can connect capital from mainstream capital markets and institutional investors into the watersheds and their benefits. This will require significant innovation and trial to build a reliable track record for what is effectively a new asset class.

4. Corporations

   Corporations, as core beneficiaries of water security, are key champions and leaders in water security efforts. Corporations should explore where they face business risks related to water quality or availability, including indirect use such as the power their operations depend upon, and partner with the civil and government sectors to establish water funds in those locations. Corporations might also explore where their own business operations might be expanded to deliver some of the components required to achieve source water protection.

5. Scientific and Non-Governmental Communities

   These communities should continue efforts to build the understanding of how and when water funds, and more generally source water protection efforts, will be successful, as well as exploring new policy, governance and financial approaches to implementing them.

6. Upstream Land Stewards and Local Communities

   Upstream land stewards and local communities should know the value of their land and understand the impacts of their practices on downstream water quality and quantity. By evaluating the benefits that may be offered through the establishment of a water fund, upstream landowners have an opportunity to improve their lives and livelihoods while improving downstream water quality.

7. Citizens of the Cities that Depend on Source Watersheds

   Citizens of all cities should be advocates for their water. The public should know where their water comes from and what’s impacting its long-term security. People can advocate for leadership to protect water at its source through policy changes and programs like water funds that put in place long-term implementation capacity.