Water use charges in Brazil: who pays for river and well water

The water use charge is the payment made by anyone who abstracts water or discharges effluent directly into rivers, lakes and aquifers, under a permit from the authorities. Created by Law No. 9,433/1997, it is neither a tax nor a tariff, according to Brazil’s National Water and Sanitation Agency (ANA): it is payment for the use of a public good. In 2026, it applies in eight federal river basins and on state rivers in 12 states and the Federal District.

In short:

• The law says water is a limited natural resource with economic value, and the charge exists to give users an indication of that value and encourage rational use.
• Those who pay are users whose use is subject to a permit: abstraction from a river, groundwater extraction, effluent discharge and other uses that alter a water body. Insignificant uses are exempt.
• The charge is different from the water bill: the bill pays for the utility’s service, and the charge pays for the use of the public good.
• The amount depends on the volume abstracted and the volume and pollution load discharged, with prices set by river basin committees.
• The money goes back primarily to the basin where it was collected, in studies, projects and works.

What is the water use charge?

It is one of the instruments of Brazil’s National Water Resources Policy. Law No. 9,433/1997 rests on two principles: water is a public good, and it is a limited natural resource with economic value. That is why those who take it directly from nature pay for that use. Under Article 19 of the law, the charge has three goals:

1. To recognise water as an economic good and give users an indication of its real value.
2. To encourage the rational use of water.
3. To raise funds to finance the programmes and actions set out in water resources plans.

In practice, the charge brings the price of raw water into the accounts of those who use it. Those who abstract more, consume more or pollute more pay more, as ANA puts it.

Who pays the water use charge?

Anyone with a use subject to a permit. Article 20 of the law requires charging for the uses listed in Article 12, and ANA sums it up: those who pay are users who abstract, discharge effluent or carry out consumptive uses directly in water bodies.

Use subject to a permit (Article 12)	Example in a company
Abstraction from a river or lake	An industry that abstracts water for its process or for cooling
Groundwater extraction	A deep well supplying a factory, hotel or hospital
Discharge of sewage and effluent	Treated effluent returned to the river by the company’s own plant
Hydropower	A small hydropower plant
Other uses that alter the water body	Dams and diversions

Exempt are abstractions, discharges and impoundments considered insignificant, which do not need a permit, and use for the needs of small rural communities. The sanitation utility is also a user: it abstracts raw water to treat and discharges sewage into rivers, so it pays the charge wherever the charge has been introduced.

What is the difference between the charge and the water bill?

One pays for the good, the other for the service. The confusion is common because both are about cubic metres:

	Water bill	Water use charge
What it pays for	The service of treating and distributing water and collecting and treating sewage	The use of a public good, raw water
Who charges	The sanitation utility	ANA, on federal rivers, or the state agency, on state rivers
Who pays	Every property connected to the network	Those who abstract or discharge directly, under a permit
How it is calculated	Tariff by consumption band and property category	Volume abstracted, volume consumed and load discharged, with prices set by the basin committee

A company can pay both: the utility bill for network water and the charge for water from its own well or abstraction from a river. How to read the utility bill field by field is in how to read a company water bill.

Where does the charge already apply?

On federal rivers, which cross more than one state, ANA charges in eight basins, according to the agency’s history:

Federal river basin	Charge since
Paraíba do Sul	2003
Piracicaba, Capivari and Jundiaí (PCJ)	2006
São Francisco	2010
Doce	2011
Paranaíba	2017
Verde Grande	2017
Grande	2024
Piancó-Piranhas-Açu	2025

On state rivers, ANA records charges in Ceará, since 1996, Rio de Janeiro, Minas Gerais, São Paulo, Paraíba, Espírito Santo, Goiás, Rio Grande do Norte, Sergipe, Piauí and the Federal District, as well as parts of Paraná (the Alto Iguaçu basins and Alto Ribeira tributaries) and Tocantins (the Formoso river basin). In Bahia, since 2006, there has been a tariff for supplying raw water from reservoirs. Since groundwater belongs to the states, charges on wells follow each state’s rules.

How is the water use charge calculated?

By the quantity and the quality of use. Article 21 of the law requires taking into account, for abstraction, the volume withdrawn and how it varies and, for discharges, the volume discharged, how it varies and the physical, chemical, biological and toxicity characteristics of the effluent. In most basins, each user’s amount adds up parts like these:

Part	Calculation basis
Abstraction	Volume of water withdrawn from the river or aquifer
Consumption	The share abstracted that does not return to the water body
Discharge	Pollution load of the effluent, usually measured by organic matter (BOD)

The unit prices and coefficients for each basin are proposed by the river basin committees, with users, civil society and government, and approved by the water resources councils. ANA has no discretion to reduce the approved amounts. On federal rivers, ANA Resolution No. 266/2025 established that one year’s use is charged the following year, except in the São Francisco basin; this bases the calculation on the actual use measured in the previous year. Those who measure and cut use today pay less tomorrow.

Where does the money from the charge go?

To the basin itself, first of all. Under Article 22 of the law, the amounts collected are applied primarily in the river basin where they were generated, to finance studies, programmes, projects and works in water resources plans. Administrative expenses of the bodies in the system are capped at 7.5% of the total collected, and the funds may be applied as grants in works that improve the quality, quantity or flow regime of a water body.

How can a company pay less for water?

By reducing what goes into the calculation basis of each bill. Four fronts apply to both the charge and the tariff:

1. Measure what you abstract. A meter on the well and on the intake, with monthly records. Without metering, the company does not know how much it uses and cannot show any reduction.
2. Cut baseline consumption. Less water per product, per bed or per meal means less abstraction, less consumption and less effluent.
3. Reuse. Treated effluent that goes back into the process reduces abstraction and discharge at the same time. The step by step is in water reuse in industry.
4. Review your classification on the utility bill. A wrong category, the number of units and the utility’s regulations change the price per cubic metre, without changing the operation’s consumption.

T&D’s water tariff consulting reviews the company’s classification in the utility tariff and runs the process, from opening the request to the new tariff taking effect; the preliminary analysis starts with a recent bill. To cut consumption, SEA 360º handles implementation, without building works, with a baseline under the IPMVP protocol, efficiency technology at points of use, electronic leak detection and repairs, followed by ongoing management. The ceiling observed in the full programme is a 70% reduction in consumption. The other instruments of water policy, such as permits and basin plans, are covered in water management in Brazil.

Frequently asked questions

What is the water use charge in Brazil?

It is payment for the use of a public good, raw water, made by those who abstract, consume or discharge effluent directly into rivers, lakes and aquifers, under a permit. It was created by Law No. 9,433/1997 and, according to ANA, is neither a tax nor a tariff.

Does a company with an artesian well pay for the water?

It may. Groundwater extraction is subject to a permit under Law No. 9,433/1997, and uses subject to a permit are charged wherever the charge has been introduced. Since groundwater belongs to the states, the rule depends on the state. Insignificant uses do not need a permit.

Is the water use charge the same as the water bill?

No. The water bill pays for the utility’s service of treating and distributing water and collecting and treating sewage. The charge pays for the use of raw water, a public good, and is paid by those who abstract or discharge directly.

Where is there a water use charge in Brazil?

In eight federal river basins (Paraíba do Sul, PCJ, São Francisco, Doce, Paranaíba, Verde Grande, Grande and Piancó-Piranhas-Açu) and on state rivers in 12 states and the Federal District, according to ANA’s history.

Where does the money from the water use charge go?

Primarily to the basin where it was collected, in studies, programmes, projects and works in water resources plans. Administrative spending is capped at 7.5% of the total, under Article 22 of Law No. 9,433/1997.

Sources

• Law No. 9,433 of 8 January 1997, Articles 1, 12, 19, 20, 21 and 22, in Portuguese: principles, uses subject to a permit, goals, calculation basis and use of the charge
• ANA, Water use charges, in Portuguese: what it is, who pays and how amounts are set
• ANA, History of the charge, in Portuguese: federal basins with charges, start years and states with charges on state rivers
• ANA, Vote No. 171/2024/DIREC, the proposal that led to ANA Resolution No. 266/2025, in Portuguese: charging based on actual use measured in the previous year
• T&D water tariff consulting and SEA 360º