company and the central government continued to insist, though, that the mine will go ahead. salinization of irrigated land and deforestation ineffective irrigation has generated salinization and drainage problems in 3,000 square kilometres of the coastal valleys (of a total irrigated area of 7,360 km2), jeopardizing land productivity and affecting the quality of lima's water supply. drainage problems are also affecting 1,500 km2 in the amazon region. in the highland and amazon areas, excessive deforestation due to nomadic agriculture practices is causing erosion and soil degradation. in the sierra 55%–60% of the land is affected, increasing the amount of soil transported downstream. water resources management by sector drinking water and sanitation further information: water supply and sanitation in peru domestic consumption accounts for 7% of water withdrawals in peru. the water and sanitation sector in peru has made significant advances in the last two decades, including an increase in access to an improved water source from 75% to 82% between 1990 and 2008 and an increase in access to improved sanitation from 54% to 68% during the same period. progress has also been achieved in the disinfection of drinking water and in wastewater treatment. despite these advances, water supply and sanitation services in peru are characterized by low coverage in rural areas (61% for water 36% for sanitation in 2008) and poor quality of service, as well as the precarious financial situation of utilities. irrigation and drainage about 80% of all water withdrawal in peru is used for irrigation, yet much of this water (65%) is lost due to reliance on inefficient irrigation systems irrigation in the valley of the marañón between chachapoyas and celendín in northern peru area with irrigation infrastructure and irrigated areas (km2) region infrastructure (a) % irrigated (b) % (b/a) costa 11,900 68 7,360 66 610 sierra 4,530 26 2,890 26 630 selva 1,090 6 840 8 770 total 17,520 100 11,090 100 source: portal agrario (1994) hydropower in 2006, 72% of peru's total electricity generation (27.4 twh) came from hydroelectric plants, with conventional thermal plants only in operation during peak load periods or when hydroelectric output is curtailed by weather events. hydropower accounts for 48% of total installed capacity. non-consumptive water withdrawal for hydropower generation accounts for 11,138 million m3 per year. the largest hydroelectric facility in the country is the 900 mw mantaro complex in southern peru, which is operated by state-owned electroperu. the two hydroelectric plants at the complex generate over one-third of peru's total electricity supply. aquatic ecosystems there are 12,201 lakes and lagoons in peru, 3,896 of which are located in the pacific basin; 7,441 in the atlantic basin, 841 in the titicaca basin, and 23 in the huarmicocha system. peru contains approximately 50,000 km2 of swamps and 45 km2 of mangroves. peru's wetlands play an important role for rural communities. these wetlands are the source for animal protein and for totora, a plant used in the artisan production of boats and floating devices. estuaries are also fundamental for the reproduction of several marine species that are basic for the fishing industry. other uses such as industrial production of algae and bird-watching tourism are not yet fully discovered. in 1996 the government adopted a national wetlands conservation strategy aimed at increasing the area of mangroves, moors, estuaries, and lagoons considered to be protected areas. uncertainties about land ownership, industrial pollution, urban sprawl, and deforestation continue to threaten wetland integrity in peru. the complete pucchun lagoon in arequipa, 50 km2, has been dried out for agricultural purposes. the villa swamp, located south of lima, was reduced from its original 50 to 3 km2 in 1989 due to urban sprawl. legal and institutional framework legal framework amazonas ancash apurímac arequipa ayacucho cajamarca cusco huánuco huancavelica ica junín la libertad lambayeque lima limaprovince callao loreto madre de dios moquegua pasco piura puno tacna tumbes sanmartín ucayali clickable map of the regions of peru. the newly approved water law (ley de recursos hídricos – lrh, published march 31, 2009) has enhanced the national water resources system (substituting decree no. 1081) which now consist of ana, a national water resources court, river basin councils, regional and local governments and water users organizations. however, some institutions foreseen under the law, such as the river basin councils, remain to be created. the water law also establishes priority uses of water, re-defines water user rights, understands water as an economic good, defines sanctions, considers river basins as management units and incorporates groundwater management considerations. it is foreseen that subsidiary legislation (reglamentos) will complement the water law by specifying, for instance, the roles of each institution within the national water resources system. the water law has been criticized by the peruvian peasant's association claiming that it allows the privatization of water resources, does not involve local and regional governments in decision-making, promotes private operators in drinking water supply who would control water resources. they also claim that the interests of mining companies, industries and export-oriented agriculture influenced the drafting of the law. ley de recursos hídricos indeed gives a strong role to the national water authority ana. its 14 local branches, called autoridades administrativas del agua, are accountable to the national authority and not to local or regional governments. the river basin councils (consejos de recursos hídricos de cuenca) are to be chaired by the president of the regional government, but they have only limited powers and their financial resources consist merely in a share of expected water abstraction fees that the national water agency would grant them. institutional organization senamhi is responsible for the generation of hydro-meteorological information the institutional framework for water resources management at national and river basin level is fragmented. the newly created national water authority (autoridad nacional del agua – ana) was established in december 2006 replacing the water resources intendancy (intendencia de recursos hídricos – irh) and is responsible for the design and implementation of sustainable water resources policies and irrigation nationally. the creation of ana improves the prospects for sound wrm, because it has a clear mandate for integrated, participative, basin-scale wrm, enjoys financial and administrative autonomy, is able to issue sanctions and will have local offices in river basins. some of the modifications included are (i) ana is the new water authority, however, it is still under the ministry of agriculture, which could hinder the impartiality required for sound wrm; (ii) ana will have river basin authorities (autoridades administrativas del agua—aaa), in each of peru's 14 hydrographic regions and local water authorities (autoridades locales de agua—ala) in selected river basins; and (iii) ana is now also responsible for water quality. however, a number of ministries have sectoral inputs on water resources management: agriculture for irrigation, housing and sanitation for domestic water use, trade and tourism for hot springs and mineral water, energy and mining for hydropower and mining operations, and the council of ministries for environmental policy and energy and water tariff and services regulation. in addition, the ministry of environment (minam) created in 2008 is responsible, among others, for the generation of hydro-meteorological information through its meteorological and hydrological national service (servicio nacional de meteorología e hidrologia – senamhi). the regional governments are responsible for the operation and maintenance (o&m) of major public hydraulic infrastructure (i.e., headwork such as dams and inter-basin transfers transferred to them as part of the decentralization process) and have some responsibilities for water quality. the regional government responsibilities poses a challenge for iwrm, since the administrative boundaries of the region do not coincide with those of the river basins. an additional challenge is that the regions are young and lack fundamental technical capacity and human resources to undertake iwrm. finally, the roles of other actors traditionally involved in wrm at the local level—some of them yet to be defined in the new institutionality—include (i) eight local offices of the environmental health general department (direccion general de salud ambiental—digesa), and (ii) water user boards (wubs) responsible for operation and maintenance (o&m) of minor irrigation infrastructure. government strategy in 2004, the peruvian government proposed a national water resources management strategy, which is currently being discussed and is pending approval. the main objectives are: institutional renovation and a clear legal framework to include (i) a resolution of current disparities between the water law and the natural resources law, and transfer of irrigation system operation and maintenance to river basin authorities, promoting public participation in decision-making processes; and (ii) institutional development strategies that formalize water and pollution rights and establish a comprehensive tariff system to cover o&m activities. integrated management of water resources addressing both water supply and demand, taking into consideration environmental, social and economic factors. it includes a plan to modernize peru's existing irrigation infrastructure with the goal of increasing the overall efficiency of irrigation systems from 35% to 45–50%. increased quality of water resources with a conservation initiative for upstream water resources aimed at decreasing sedimentation; it creates a pollution control authority to monitor agricultural and industrial discharges, promotes water recycling, and improves coastal drainage and salinity problems. disaster management and mitigation including consistent weather monitoring, reforestation in strategic upstream areas, water channelling, and improved urban planning preventing settlements in high-risk areas. capacity building and water culture, and education program for preschool to college level students about the economic, social, and environmental value of water resources. water resources information system strengthening of networks that monitor water quality and quantity; making accurate information publicly available. (see national water resources management strategy) international agreements the amazon cooperation treaty, signed in 1978 by bolivia, brazil, colombia, ecuador, guyana, peru, suriname and venezuela, aims at promoting sustainable use of natural resources, including water, in the amazon basin on 25 june 2005, after the approval of a us$700,000 grant by the global environment fund the amazon cooperation treaty organization, the general secretariat of the organization of american states and the united nations development program agreed to sign the integrated and sustainable management of transboundary water resources in the amazon river basin considering climate variability and change project. the project aims to strengthen the institutional framework for planning and executing, in a coordinated and coherent manner, activities for the protection and sustainable management of water resources in the amazon basin in the face of impacts caused by human action and ongoing climatic changes being experienced in the basin. water pricing water pricing in peru follows a complex system set out in the water law of 2009, which defines three types of fees and two types of tariffs: (i) fees paid for water abstraction from the environment (retribuciones economicas por el uso del agua); (ii) fees paid for wastewater discharge to the environment (retribuciones económicas por vertimiento de uso de agua residual tratada); (iii) tariffs for the use of water infrastructure; (iv) tariffs for water monitoring; and (v) tariffs for sectoral water distribution. tariffs for water distribution include irrigation tariffs and drinking water tariffs. these are historically the most important types of tariffs. drinking water tariffs levied by utilities are approved by the national superintendency for water supply and sanitation, sunass. tariffs are low compared to some neighboring countries, such as brazil and chile. water bills are often not paid. (see water supply and sanitation in peru). irrigation tariffs are collected by water user boards. water is rarely metered and therefore fees are mostly based on area and crop types rather than on volume of water used. tariffs vary between us$2.2 per ha and us$25.55 per ha, and collection rates vary from 10% in the amazon and 68% in the costa region. farmers contribute in cash through payment of the water tariff and in kind, through labor and materials, following ancestral practices.(see irrigation in peru) all other fees and tariffs have to be approved by the national water agency as well as, in the case of abstraction and discharge fees, by the ministry of agriculture. the proceeds are to be used for environmental monitoring, prevention, control and remediation; water resources planning; and the operation and maintenance of infrastructure. the level of fees is to be differentiated depending on the type of use, taking into account social, economic and environmental factors. as of 2010, these new fees and tariffs were not yet being collected pending the setting of these fees through subsidiary legislation. water related risks the peruvian piedmont and coastline are prone