Water Policy and Management in Chile

The Chilean water model has been described as a textbook example of a successful free water market system that has promoted efficient water rights, allocation, and use. In this article, we seek to provide the reader with a general reference work on the creation, implementation, main features, and impacts of this model. To achieve this, we briefly describe the imposition of Chile’s 1981 Water Code. This description provides the historical context for understanding its main characteristics. This makes it both unique and controversial. In continuation, we revise the main arguments for and against the model. Finally, we illustrate how the Chilean water model has operated on the ground by describing four different cases at distinct scales and that illustrate its social, political, and environmental repercussions.