Water management: what it is, how it works in Brazil and how to do it in a company
Water management is the set of rules, institutions and practices that secure water in quantity and quality for every use. See how Brazil's Water Law organises it, when a company needs a water-use permit and how to manage water inside an operation.
By T&D Sustentável 9 min read
In this article · 8
Water management is the set of rules, institutions and practices that secure water in quantity and quality for every use, now and in the future. In Brazil, it is organised by the Water Law (Law No. 9,433/1997), which treats water as a public good with economic value, managed by river basin and with the participation of government, users and communities. Inside a company, water management means measuring consumption, cutting losses, meeting water-use obligations and proving the result.
In short:
- Brazil’s Water Law defines water as a public good, limited and with economic value, and the river basin as the unit of management.
- The policy’s instruments are water resources plans, the classification of water bodies, the water-use permit, charges for water use and an information system.
- A company needs a water-use permit to abstract water from a river or a well and to discharge effluent into a water body, except for uses deemed insignificant.
- Brazil lost 39.53% of its treated water in distribution in 2024, according to Instituto Trata Brasil: management also starts in the network.
- In a company, water management comes down to four verbs: measure, cut losses, meet obligations and report.
What is water management?
The term covers two levels that talk to each other but should not be confused:
| Water resources management | Water management in a company | |
|---|---|---|
| Who does it | Government, basin committees, users and communities | The company itself, with suppliers and contractors |
| Scale | The river basin | The building, the plant, the network of sites |
| Tools | Plans, classification, permits, charges and information | Metering, targets, maintenance, procedures and reporting |
| Central question | Is there water for every use in the basin? | How much do we use, where do we lose it and how do we prove the result? |
The two levels meet at concrete points: a company that draws water from a well depends on a permit from the water agency; one that discharges effluent into a river answers to that river’s classification; and every company that cuts consumption eases the pressure on the basin its water comes from.
How does water management work in Brazil?
The National Water Resources Policy, created by Law No. 9,433/1997, rests on six principles:
- water is a public good;
- water is a limited natural resource with economic value;
- in times of scarcity, priority goes to human consumption and watering animals;
- management must always allow multiple uses of water;
- the river basin is the territorial unit of management;
- management must be decentralised, with the participation of government, users and communities.
The policy is put into practice by the National Water Resources Management System, made up of these bodies:
| Body | Role |
|---|---|
| National Water Resources Council | The policy’s highest deliberative body, with nationwide resolutions |
| National Water and Sanitation Agency (ANA) | Implements the policy on federal rivers and grants federal water-use permits |
| State and Federal District water resources councils | Run the policy on state rivers and groundwater |
| River basin committees | Bring together government, users and civil society; approve the basin plan and propose the charges |
| Federal, state and municipal water agencies | Grant permits and inspect water use |
| Water agencies of the basins | Act as the committees’ executive secretariat and follow how the charge revenue is applied |
What are the instruments of Brazil’s water policy?
They are the tools the system uses to decide who uses how much water, at what quality and at what price:
| Instrument | What it is | What it means for a company |
|---|---|---|
| Water resources plans | Long-term plans by basin, state and country, with a diagnosis, a supply and demand balance and use targets | Show where water is most contested and where new abstractions face restrictions |
| Classification of water bodies | The quality class of each river, according to its main uses | Sets the standard that effluent discharged into that river must meet |
| Water-use permit | Authorisation to abstract, draw from a well or discharge effluent | Mandatory for anyone using water directly, except for insignificant uses |
| Charges for water use | The price of raw water, where the basin committee has introduced it | A cost of self-supply, on top of treatment and pumping |
| Information system | The public database on water resources | Lets you check availability and permits in the region |
Charges for raw water, and why they exist, are covered in what is water actually worth.
When does a company need a water-use permit?
Under Law No. 9,433/1997 (art. 12), the following require a permit from the government:
- abstracting water from a river, lake or reservoir, for consumption or as a process input;
- drawing water from an aquifer, through a well, for consumption or process use;
- discharging sewage and effluent into a water body, treated or not;
- hydropower and other uses that alter the quantity, quality or regime of the water.
Uses deemed insignificant, and the needs of small rural communities, are exempt under each agency’s regulations. Permits are granted by ANA on federal rivers and by the state agency on state rivers and groundwater.
A company supplied only by the public network does not need a permit for that water: the water utility holds it. The same goes for sewage discharged into the collection network, which follows the utility’s rules rather than the rules for discharging into a river.
What are the challenges of water management in Brazil?
The country has plenty of water, but it is unevenly distributed and a great deal is lost along the way:
- Uneven distribution. Brazil holds about 12% of the planet’s surface fresh water, according to ANA. The North region, with 7% of the population, has 68% of the country’s water; the Southeast, with 43% of the population, has 6%.
- Losses in distribution. In 2024 the country lost 39.53% of its treated water before it reached consumers, about 4.4 billion m³ in physical losses, according to Instituto Trata Brasil’s 2026 Water Loss Study. The legal loss limits are in water waste: the 4 hidden culprits.
- Droughts and crises. Dry years expose the lack of storage and planning, and the bill reaches companies as rationing, water tankers and stopped operations. See the consequences of a water crisis for business.
- Quality. Untreated sewage reduces the water available for the basin’s other uses. The overview is in sewage collection and treatment in Brazil.
- Competing uses. Supply, irrigation, industry and energy compete for the same water, which is why basin plans and permits exist.
How do you manage water in a company?
Across five fronts, each with a result you can measure:
- Know your use. A baseline from invoices and readings, metering by area and hourly consumption. Without data, there is no management. See how remote water consumption monitoring works.
- Cut losses. Hidden leaks, badly adjusted equipment and uncontrolled processes. The signs and the test are in hidden water leak: 7 signs and how to find it.
- Meet obligations. Abstraction and discharge permits where water is used directly, the environmental licence, effluent standards and, for those who buy from the network, the right category and number of billing units on the bill. See how to read a company water bill.
- Manage risk. Tank levels, alternative sources such as reuse and rainwater, and a plan for a water shortage.
- Report. Targets per unit, savings measured under a protocol and a report in the market standard. The water indicators of a sustainability report are in ESG and water management.
The full step-by-step programme, with what each front delivers, is in the guide to water savings for businesses.
That is the work T&D’s SEA 360º does continuously: implementation with no construction works, with leak detection, standardisation and training, and ongoing management with monitoring, maintenance and reports, with savings measured under the IPMVP protocol. Across the operations it serves, T&D counts more than 1.71 billion litres of water saved, more than 1.3 billion litres of effluent no longer generated and more than 3,400 tonnes of CO₂ avoided, with a presence in 47 cities in 9 states, according to the company’s official figures.
Frequently asked questions
What is the difference between water management and water resources management?
Water resources management is the public management of a basin’s water: plans, permits, charges and river quality. Water management, in everyday use, also includes how each organisation manages its own consumption: metering, losses, targets and reporting. The two meet in permits, in effluent discharge and in the pressure consumption puts on the basin.
Who manages water in Brazil?
The National Water Resources Management System: the National Water Resources Council, ANA, the state councils, the basin committees, the water agencies and the basin agencies. Management is decentralised, by basin, with the participation of users and communities.
What is a water-use permit?
It is the government’s authorisation to use water directly: abstract from a river, draw from a well or discharge effluent into a water body. In Brazil it is called «outorga». It is granted by ANA on federal rivers and by state agencies on state rivers and groundwater, and insignificant uses are exempt.
What are charges for water use?
They are the price paid for raw water abstracted directly, in basins where the committee has introduced them. They are one of the Water Law’s instruments and serve to recognise water’s economic value and fund action in the basin itself. They are not the same as the water utility’s tariff, which pays for treatment and distribution.
Is water management mandatory for companies?
Part of it is: anyone who abstracts water or discharges effluent directly needs a permit and a licence, and everyone must meet discharge standards. Measuring, cutting losses and setting targets is a management choice, and that is where savings, and proof for clients and investors, come from.
Sources
- Law No. 9,433 of 8 January 1997, Brazil’s Water Law, in Portuguese: principles (art. 1), instruments (art. 5), permits (art. 12) and the national system (art. 33)
- Water Loss Study 2026 (SINISA, 2024), Instituto Trata Brasil and GO Associados, in Portuguese
- National Water Agency (ANA), water-saving campaign by its Environmental Management Committee (2014), in Portuguese: distribution of fresh water in Brazil
- T&D Sustentável in numbers: litres saved, effluent avoided, CO₂ avoided and presence
