Disputes over water are often related more to the social, economic and institutional context than they are to the technical factors governing the availability of water resources. In many countries, enforcement of legislation is weak and judicial systems are inadequate. This is detrimental to sustainable water use and service provision in many ways. It reduces economic growth, undermines performance and effectiveness, discourages investments in the water sector and frustrates stakeholder participation in the decision-making process. In most OECD countries, decision-making power over water has been delegated to lower levels of government. Bottom-up, demand-driven approaches that combine the experience, knowledge and understanding of various local actors need an overall framework for managing mutual dependencies and creating synergy.