Participatory Social Impact Assessment of Water Funds
A Case Study from Lima, Peru
By Leah Bremer, Gena Gammie, Oscar Maldonado - Forest Trends, Forest Trends, Forest Trends View PublicationWater users and governments are increasingly recognizing watershed conservation as a critical component of a comprehensive water security strategy. In Latin America, this has inspired the launch of dozens of water funds, which facilitate investments in watershed conservation and restoration by pooling financial contributions from downstream water users, governments, and businesses.
Beyond generating hydrological benefits for downstream water users, many water funds also aim to improve the livelihoods and wellbeing of partnering upstream land users, especially where those land users are economically marginalized. Generating social and economic benefits for upstream land users is commonly seen as a critical component for ensuring equity in the fund’s impact, as well as increasing the likelihood that the fund’s interventions will be sustained over time.