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Natural Resources, Energy and Environment, Latam

Decree Issuing the General Water Law

On December 11, 2025, the Official Gazette of the Federation published the “Decree issuing the General Water Law (Ley General de Aguas) and amending, supplementing, and repealing various provisions of the National Water Law (Ley de Aguas Nacionales).”

This new regulatory framework redefines the manner in which concessions, volumes of water use, wastewater discharges, and the legal relationship between water users and the water authority are managed.

We hereby present the following critical points that concession holders, industries, developers, and agricultural and real estate operators must be aware of.

Absolute Prohibition on the Transfer of Concessions Between Private Parties

Any possibility of assigning or transferring titles or volumes is eliminated. It is no longer permitted to transfer water rights through asset purchase agreements, private contracts, or registered assignments. Only the authority may redistribute volumes.

New Volume Reassignment System (Replacing Assignments)

The National Water Commission (CONAGUA) will administer a Reserve Fund composed of extinguished, relinquished, recovered volumes, or volumes resulting from priority for human consumption.

Volume reassignment will be a discretionary administrative procedure, subject to sustainability criteria, water availability, and the applicant’s hydrological performance.

Restrictions on Supplying Water to Third Parties

Supplying water to third parties is prohibited when it implies a change in the authorized use. Doing so may result in:

  • Rescission or revocation of the concession title;
  • Financial penalties;
  • Facility shutdowns.

This directly affects common schemes in industrial parks, user associations, and real estate developments.

Hydrological Responsibility as a Mandatory Criterion

CONAGUA will assess the user’s hydrological performance (efficiency, reuse, discharge management, and measurement) in order to:

  • Grant extensions;
  • Evaluate reassignments;
  • Mitigate or aggravate sanctions.

Stricter Extensions

Extensions must be requested:

  • Within the final three years of the concession’s term, and
  • At least six months prior to expiration.

The user’s tax and water-related compliance shall be verified.

Elimination of the Right to Change the Use of Concessioned Water

Any modification of authorized use requires a new procedure before CONAGUA. It is no possible to “adjust” the use while maintaining the same volume.

Guarantee Fee

The general two-year term may be extended up to two additional times if the applicant demonstrates justified grounds before the authority.

Regulated Rainwater Harvesting

  • Industrial and commercial uses require federal authorization.
  • Domestic uses will be subject to state and municipal regulation.

New National Public Water Registry

Centralizes information on concessions, permits, extensions, sanctions, and related acts.
Enhances traceability and reduces legal uncertainty.

Strengthened Sanctioning Regime and New Criminal Offenses

  • Higher fines;
  • Temporary or permanent shutdowns;
  • Specific offenses, including illegal water commercialization, alteration of watercourses, and corruption in administrative procedures.

Immediate Recommendation

Conduct a comprehensive review of concession titles, corporate transactions, and water supply schemes, and prepare strategies for future reassignment procedures, extensions, and hydrological compliance.

Authors:

Mario Jorge Yáñez Vega
jorge.yanez@rrs.com.mx

Lourdes Gutiérrez Valdez
lgutierrez@rrs.com.mx

 

 

 

 

 

 

Dear Clients and Friends,

In line with our commitment to keep you informed about legal and regulatory developments with business impact, we hereby inform you that on January 19, 2026, the Decree enacting the General Law on Circular Economy ("LGEC") was published in the Federal Official Gazette. This new legal framework, promulgated by President Claudia Sheinbaum Pardo, shall come into force on January 20, 2026, and marks a mandatory transformation in the operational model of all companies in Mexico.

The primary purpose of the Law is to transition from a linear economy to a circular one, seeking to increase the useful life of products, minimize waste generation, and establish a system of shared responsibility between the public and private sectors.

Critical Impact

1.      Extended Producer Responsibility ("EPR"): The LGEC establishes EPR as the obligation of producers and importers to be environmentally responsible for their products throughout their entire Life Cycle. This responsibility is complementary to the shared responsibility already provided for in the General Law for the Prevention and Integral Management of Waste (“LGPGIR”).

2.      Registration and Circular Management Obligation: Companies must prepare a Circular Management plan (which includes a Life Cycle Analysis) and register with the Circular Economy Registry installed on the National Platform. Failure to register or the use of false information may result in severe sanctions under the terms of the General Law on Ecological Balance and Environmental Protection (“LGEEPA”).

3.      National Circular Economy Seal: An official seal with a three-year validity period is created. Obtaining this seal not only validates regulatory compliance but also grants preference in public procurement, representing a strategic competitive advantage for the holder company.

4.      Amendments to Existing Laws (LGEEPA and LGPGIR): The publication is not isolated; it amends LGEEPA to require that the utilization of natural resources and virgin materials prioritize the integration of secondary raw materials. Likewise, waste management must now follow principles of hierarchization and traceability.

5.      Liabilities and Sanctions: The LGEC stipulates that failure to submit reports or documents provided for in the registered Circular Management, as well as any violation of the Law and its Regulations, shall be sanctioned by the Ministry of Environment and Natural Resources ("SEMARNAT") following the parameters of LGEEPA. Administrative sanctions may include fines ranging from 20 to 60,000 UMA (Units of Measurement and Update), temporary or permanent closure of facilities, suspension or revocation of authorizations and licenses, and even administrative arrest. It should be noted that these measures shall be imposed without prejudice to civil liability for environmental damage or to criminal penalties in the event of offenses.

 

Implementation Timeline

It is vital that any company initiate the adaptation process immediately, considering the following legal timeframes:

·        180 calendar days: Deadline for the issuance of the Law's Regulations and for state legislatures to harmonize their local laws.

·        180 calendar days: Deadline following publication of the Regulations to issue the National Circular Economy Program.

·        5 years: Maximum deadline for the progressive conversion of landfills toward circular economy models.

How Can Ramos, Ripoll & Schuster Support You?

The transition toward a circular economy requires not only operational adjustments but also a preventive legal strategy to avoid sanctions and leverage the tax and commercial benefits contemplated by the law.

Our specialized services include:

·        Compliance Diagnostic: Assessment of your business model against the new obligations under the LGEC.

·        Circular Economy Registry Advisory: Comprehensive support in registering your Circular Management and preparing Life Cycle Analysis.

·        EPR Strategy: Design of extended responsibility schemes and concertation agreements with the SEMARNAT.

·        Voluntary Environmental Audit: Implementation of preventive processes to identify improvement opportunities and protect the company from inspections.

·        National Seal Certification: Management and compliance with requirements to obtain preference in public tenders.

At Ramos, Ripoll & Schuster, we are ready to advise you on adapting your operations and ensuring that this transition strengthens your business's competitiveness.

Practice Area:

ENVIRONMENTAL
Authors:

Edmundo Elías-Fernández

eelias@rrs.com.mx

Mario Jorge Yañez Vega

jorge.yanez@rrs.com.mx

Lourdes Gutiérrez Valdez

lgutierrez@rrs.com.mx