Mexico, like most countries, faces the great challenge of ensuring the capacity of the nation's water resources to meet growing demands for beneficial uses and for sustainable development. Current issues and problems involve the effectiveness of the legal and institutional framework within which water management takes place; efficiency or physical yields of the water infrastructure, and efficiency of water use. In light of these problems, the author discusses water policies and their implementation in Mexico. Policies implemented involve agricultural irrigation, urban needs, and general water management. The latter is discussed in terms of water management instruments, water and market forces, and the institutional setting.