Capable institutions are an essential element of effective integrated water resource management. An institutional assessment process investigating policy, organizational and operational elements, are effective tools when designed and analyzed by stakeholders. Assessment criteria include:
- a decision-making capacity at the basin level that reflects the interests of different uses and users;
- a clear and administratively detailed regulatory framework with criteria for decision making;
- a monitoring and information system for water resources information;
- a system that allows development and analysis of different scenarios for water use and effluent discharges;
- effective and transparent accountability through a stakeholder participation mechanism;
- enforcement and sanctioning power;
- representation of water used interests and liaison with river basin management institutions;
- effective control of service providers;
- cost recovery by service providers and a system that allows market incentives for efficient allocation.