Why should water be managed as a system rather than as a sector?

Many of the world’s resources reach us through cycles. Water, too, is a renewable natural resource that serves humankind within the hydrological cycle. Increasing pressures on water, such as climate change, urbanisation and pollution, have ensured that the issue of managing water as efficiently as possible remains a constant area of research. Water falls to Earth as a result of the hydrological cycle—a system that has reached equilibrium over millions of years. It subsequently gives rise to new systems across the globe. Within this framework, water should be recognised as a natural resource interconnected through these systems. Therefore, rather than treating water as a sector in its own right, there is a need to shift towards managing it as a system—viewing it as a resource that links climate, ecosystems, and social and economic systems (2).

Consequently, water should not be regarded merely as a resource under pressure in isolation; it must be considered as part of a system characterised by climate change, ecosystem change and economic instability. Climate change is primarily experienced through water, including droughts, floods and changing rainfall patterns. Climate change, land-use change – particularly deforestation – and human activities are reshaping the hydrological cycle at local, regional and global scales. Water is therefore a critical component of solutions that facilitate both climate adaptation and climate change mitigation through nature-based solutions (NbS).

Water management must shift towards implementation

Water management must now move beyond the cycle of planning and target-setting and move towards implementation. In this context, greater effort must be made to translate plans into policy and policy into practice. To this end, it is first necessary to identify where management gaps lie and where there are shortcomings in assessment.

A critical shortcoming in current approaches is the failure to sufficiently recognise ‘green water’—the invisible moisture present in soils, ecosystems and the atmosphere—as a central component of the hydrological cycle. Whilst water resources management has traditionally focused on ‘blue water’ in rivers, lakes and aquifers, ‘green water’ plays a fundamental role in regulating rainfall, sustaining ecosystems, supporting agriculture and mitigating climate change through carbon sequestration. It is therefore essential to strengthen the management of the entire hydrological cycle—encompassing both blue and green water—to build long-term resilience. We must not overlook how water management can be improved and made more coherent by recognising the full hydrological cycle, including the role of green water.

The transition from a fragmented approach to systemic water management

To move towards a more coherent, systemic approach to water management—moving beyond fragmented approaches—it is necessary to examine how water systems function and how policy, finance and implementation can be aligned.

Despite growing interest and investment in the water sector, the current management approach remains fragmented across institutions, sectors and scales, and the desired outcomes are not being achieved. In this regard, rather than establishing new concepts and objectives to achieve results, it is necessary to link existing ones through a systems management approach and ensure that practices reinforce one another. In summary, a systemic shift is required in areas such as the more effective integration of water into climate and development frameworks, the strengthening of coordination between management levels, and the management of water-related risks (2).

This policy shift can be addressed under key headings such as addressing water alongside climate policy, managing the entire water cycle, linking water to global processes, and making water management more inclusive and equitable. Viewed in general terms, these changes will support more effective decision-making processes, strengthen resilience at the systems level and enable coordinated implementation on a large scale.

Figure 1. The Green Water Cycle and Blue Water Flow

The Entire Water Cycle Must Be Managed

The stability of water systems depends not only on the climate but also on how land, ecosystems and soils are managed. These interactions shape the hydrological cycle, which facilitates the continuous movement of water through the soil, vegetation and the atmosphere.

However, whilst management systems focus largely on blue water (rivers, lakes and groundwater), they largely overlook green water—the moisture present in the soil, vegetation and atmosphere—in policy-making. Consequently, decisions regarding land use, agriculture, ecosystems and water are generally taken in isolation, despite their physical and spatial interdependence.

This disconnect is not merely a governance gap, but a systemic risk. Changes in land use and ecosystem health directly affect soil moisture, evaporation and precipitation patterns, and are further exacerbated by climate change. When these relationships are not reflected in policies, interventions risk addressing the symptoms rather than the underlying system dynamics.

Consequently, the resilience of water systems is declining; systematic risks to food production, ecosystem stability and long-term water availability across regions are increasing, and this situation can create knock-on effects across economies and societies.

Why must action be taken?

Physical water issues cannot be addressed in isolation from the environments and ecosystems through which water flows. Forests, soils, wetlands and agricultural systems regulate water flows, store moisture and influence rainfall patterns at local and continental scales. These processes form the basis of food production systems, protect ecosystems and contribute to climate regulation and resilience.

Water does not follow national, administrative or sectoral boundaries. Water that evaporates in one region may contribute to rainfall in another and can reach distant regions via the atmosphere. Furthermore, rivers, soils and groundwater systems operate across different physical boundaries.

However, management systems are generally established for fixed jurisdictions and sectors; this fails to take account of the hydrological cycle of water. This mismatch limits the effectiveness of policies and makes it difficult to manage risks arising from inter-regional interactions and scale effects. Therefore, to strengthen water resilience, an adaptive management approach is required at catchment and landscape scales, which addresses blue and green water, land use, ecosystem management and climate impacts in an integrated manner (1).

What should be done?

All water-related institutions and organisations must integrate both blue and green water into climate policy and funding models.

In this context

• Water management must be more closely linked to land management,
• Green water must be integrated into land-use, agricultural, climate and biodiversity policies,
• Ecosystems that regulate water flows, including forests and wetlands, must be restored and protected,
• Synergy and coordination between water, land, agriculture and climate policy frameworks must be enhanced,
• Information, data and monitoring systems that capture interactions throughout the hydrological cycle must be scaled up and strengthened to support evidence-based decision-making.

Water management must go beyond focusing solely on ‘blue water’ to encompass ‘green water’ and the entire hydrological cycle. This approach requires linking land, ecosystems and water systems across different scales and aligning them with climate policies.

Managing the entire hydrological cycle is essential to strengthen resilience, sustain ecosystems and ensure water availability in a changing climate.

Water must be at the heart of climate policies.

Climate change is primarily experienced in the form of water-related issues. By increasing temperatures, droughts, floods and rainfall variability, climate change heightens risks for ecosystems, agricultural production, cities and energy systems. This, in turn, places increasing pressure on societies and economies.

However, climate policy planning generally treats water as a sectoral issue rather than as a systemic risk linking multiple sectors and levels of governance. Whilst many national climate strategies acknowledge water-related risks, they generally fail to translate this understanding into governance reforms, infrastructure planning or investment priorities.

Furthermore, climate finance is not sufficiently aligned with water realities. Investments often address climate risks in isolation, failing to take into account the consequences of changes in water systems on adaptation.

This leads to continued investment in locations and infrastructure that are not resilient to water-related risks. This disconnect limits the effectiveness of climate action and increases the risk of misalignment.

Adaptation to climate change and mitigation of its impacts are directly linked to how water systems are managed. Climate-water risk assessments – such as drought and flood risk analysis, groundwater recharge and long-term hydrological change – must be taken into account in decisions regarding water allocation, infrastructure investment, land management, ecosystem conservation and disaster preparedness. These risks must be recognised and assessed as significant financial risks within climate and economic decision-making processes.

Governments and financial institutions must integrate both ‘blue’ and ‘green’ water into climate policy and financing strategies. In other words: water-related issues must be integrated into Nationally Determined Contributions (NDCs), National Adaptation Plans (NAPs) and climate implementation plans. Furthermore, comprehensive climate-water risk assessments must be carried out for policy, planning and investment decisions.

Investment and financing for water and climate policies must be aligned.

Within the framework of climate finance, water resilience must be enhanced through investments in catchment restoration, resilient water infrastructure, early warning systems for droughts and floods, and nature-based solutions.

To enhance water resilience, public investment in ecosystem restoration, water information systems and early warning systems must be increased. Furthermore, water must be given greater consideration in climate-related decision-making processes. In other words, climate policy and finance must recognise water as a central link between climate adaptation, food systems, ecosystems and economic resilience. Aligning climate action with water systems is essential to ensure that investments deliver long-term, systemic resilience.

Integrated policies are needed at a global scale

Water forms the foundation for progress in the areas of climate action, biodiversity conservation, land management, food systems and sustainable development. However, water management remains fragmented within global policy processes.

Climate, biodiversity, land-use planning and development plans are generally assessed and funded separately, despite being interconnected through water systems. Consequently, water-related risks and dependencies are not adequately addressed. This leads to disjointed priorities, competing funding sources and implementation gaps (2).

Where there is a lack of alignment, progress in one area may inadvertently have a negative impact on outcomes in another. Therefore, addressing water challenges requires greater consistency and coherence in global governance frameworks.

Water must be more strongly integrated into climate, biodiversity, land-use planning and development policies. Without this, global commitments risk remaining fragmented, whilst the impact of policies at national and local levels remains limited.

Governments and international organisations must strengthen the role of water in global governance plans and processes by:

• Integrating both blue and green water into climate, biodiversity, land management and development policy plans,
• establish coordination mechanisms amongst key multilateral processes,
• use water as an entry point to link policy agendas across sectors and scales,
• and align national commitments and implementation progress with global commitments.

In summary, water must be recognised as a global priority that links climate resilience, ecosystem conservation, land management, disaster risk reduction and sustainable development. Furthermore, strengthening coherence within global governance processes is essential to translate commitments into coordinated action.

Inclusive, Fair and Equitable Water Governance

Water governance decisions shape livelihoods, ecosystems, food systems and public health. However, many governance systems fail to take into account the voices, knowledge and priorities of those most affected by the decisions taken.

Inclusivity alone does not guarantee fair outcomes. Without attention to power, representation and influence in decision-making, participation may reinforce existing inequalities rather than address them.

Women, young people, indigenous peoples and marginalised communities are often under-represented or excluded from decision-making processes. Consequently, policies may disregard local and indigenous knowledge, overlook local realities, reinforce existing inequalities and fail to produce effective or sustainable outcomes.

This is not merely a matter of equality and justice, but also one of effectiveness. When governance systems fail to reflect the diversity of stakeholders and knowledge systems, they risk producing solutions that are out of step with local realities and difficult to implement.

Inclusive, fair and equitable governance strengthens both the legitimacy and the effectiveness of water-related decisions. Local authorities, communities and indigenous peoples play a critical role in the management of water systems and the implementation of policies. Their knowledge and experience are essential for understanding local conditions, managing risks and sustaining ecosystems.

Policies that lack effective participation and accountability risk being disconnected from practice and proving inadequate to address inequalities and vulnerabilities. Governments and institutions should therefore strengthen inclusive, equitable and fair participatory water governance through the following measures:

• Incorporating human rights-based approaches into water management plans,
• Ensuring that women, young people and local communities have a genuine say in decisions and outcomes,
• Strengthening transparency, accountability and access to information within water institutions,
• Supporting inclusive dialogue platforms across sectors and levels of governance

Water management must be inclusive, equitable, fair and participatory, and must ensure that diverse stakeholders can influence decisions and outcomes.

Conclusion and assessment

Water is a natural resource for which demand is constant and vital, and which cannot be substituted by anything else. Consequently, in many countries it is managed with the understanding that supply security must be ensured as a matter of urgency. The imperative to meet demand as quickly as possible confines water management to a narrow cycle of supply security. Moving beyond this cycle to seek alternative solutions is only possible during periods when water supply security is at risk. This often results in solutions that are uneconomical, short-term and temporary (1). However, increasing pressures on water resources—starting with climate change—and the difficulties encountered in implementing established policies highlight the need for a different approach to water management, extending from the local to the regional and global levels.

Research conducted in this context has shown that real progress in water management depends not only on the announcement of new commitments but also on whether the interrelationships between water-related systems are taken into account. It is therefore recognised that more consistent management, more effective investment and stronger implementation are required.

To this end, there is a need for a more detailed analysis of both the systems approach in management and the natural water cycle that provides us with water. In summary, for more effective water management, a multidisciplinary and multi-layered approach that takes into account the water cycle and the systems perspective is required.

Water-related risks are increasing worldwide, and it is evident that genuine progress in this field depends not only on new commitments but also on translating these commitments into coordinated action.

In this context, the challenges hindering the implementation of the objectives set by water management, and how these can be overcome, come to the fore. This highlights the need for a new systems analysis and policy in water management.

References

[1] Dursun Yıldız (2023) “Why is a systems-thinking approach needed to address the global water problems?” World Water Management, Diplomacy & Science News, 2 July 2023. Hydropolitics Association – Turkey.

[2] SIWI (2026) ‘Governing water as a system’. SIWI Policy publications. 23 April 2026. Available at: https://siwi.org/publications/governing-water-as-a-system