In addition, a quick literature review on water governance in the LAC region further reveals why most LAC countries lag behind in sustainable water management: lack of political leadership, inadequate legal frameworks, poor utilities management structures, insufficient stakeholder involvement, shortage of financial resources to meet responsibilities, and inadequate provision for resolving conflicts between water supply and sanitation needs and interests. Lack of social cohesion is also a challenge, and action is necessary to overcome social inequalities. Water is both a local and global issue, both a human right and an economic good. It both affects and is affected by property rights. Water requires large sunk investment costs to build, operate and maintain infrastructure, is a key driver of sustainable development, and generates multiple externalities in other policy areas (agriculture, health, education, economy and finance, gender, poverty alleviation, etc.).