Financing Water Resources Management in France ( January 2012 update )

This update of January 2012 of a case study on « financing integrated water resources management in France » (produced in 2010 for OECD works) explores benefits of a policy targeting the good and sustainable ecological status of all water bodies. The infrastructure of domestic water supply has already been completed in France. Urban and industrial pollutions are more and more under control, and the new priority is to restore the ecological sustainability of water bodies. In big cities, water bills related to water supply and sanitation utilities are generally cheaper than European average, although they cover most of utilities costs and include basins consumption and pollution taxes. Water agencies have demonstrated the efficiency of financial solidarity at the watershed scale for treating point source pollutions and investing on water infrastructure. Navigation in frastructure is maintained through various taxes (gates taxes, hydraulic tax,...). Flood damages of private properties are financed through an insurance mechanism with a state guarantee, that feeds a public fund for flood prevention: the Barnier’s fund.