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Water Rights In Chile

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Chilean water resources management is that of a centralized governance with individual water rights (Hulbert and Diaz, 2013). The introduction of water rights and markets in Chile has been largely driven by policy dating back to the colonial period. The 1819 Executive Decree is the earliest Chilean text to regulate water use. This decree defined the extent of irrigating systems i.e. canals and water intake. The Civil Code of 1855 established the concept of surface water as a public good but that licences can be issued to individuals for the exclusive use of water by the “competent authority”. This code is what has formed the basis of private sector financing and development of water infrastructure as evident in Chile’s WRM (Hearne and Donoso, …show more content…
Hence the 1967 code reinforced the state in its administration of water resources and enabled water expropriation and reallocation towards rational and beneficial uses subject to regional plans (Bauer, 1998). It also established a central body - Dirección General de Aguas (DGA) to administer and regulate water rights. This code also coincided with the land reform of 1967 (Agrarian reform) which according to President Montalva was necessary to terminate a system of land and water tenure which was “impeding the general economic and social development of the country”. According to the Montalva regime, previous water codes have resulted in the concentration of water rights in very few hands resulting in monopolisation and social inequality especially in rural areas (Thorme, 1971). The 1967 Water Code was hardly successful in achieving its objectives due to the lack of institutional capacity during the regime of Allende (1970 – 1973). The failure of these reforms (land and water) in the time of a declining economy led to a military coup led by General Augusto Pinochet which overthrew the Allende government in …show more content…
The neoliberal economic policies thus strongly enhanced private ownership of water rights. The 1981 National Water Code is one of the many neo-liberal reforms introduced by the Pinochet government. This law maintained water as a ‘national property for the beneficial use of the public’ but granted permanent transferable rights to individuals and private parties. Unlike previous water laws, this 1981 law attached a form of security to water rights by establishing that a compensation would be given in the event of water expropriation as may be required in draught years. Rights were specified for both surface and ground waters; also, consumptive (e.g. irrigation, mining) and non-consumptive use (hydropower, industry) of water was defined. Although water use rights existed in Chile before 1981, the ‘protection’ of rights under the 1981 water code facilitated water trading and the operation of water markets. Under this law, the DGA still possessed administrative power to grant water rights depending on availability but had limited control on the recipient’s

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