Many pilot programmes and experimentations at local and state levels (e.g. voluntary schemes for farmers to give up subsidies) could be shared and replicated. Mexico has significantly increased water-related public expenditures and the level of water-related investment. To ensure that future expenditures are well-targeted and cost-effective, it is necessary to ensure that initiatives are well co-ordinated between departments and levels of government, that other potential sources of financing are being accessed (including revenues from water-related services), and that incentives are correctly set for efficient water uses. The OECD has identified a number of regulatory functions that need to be properly designed and allocated to increase social inclusion and boost local development in Mexico. While there are several ways of discharging these functions across actors and places, improving the regulatory framework will be essential for the sustainable provision of water services to the population. This report highlights a number of levers that a new administration may wish to consider when setting up a cohesive and cost-effective water policy framework in Mexico.