3 Latin American utilities solving the region’s toughest water challenges
From the Amazon rainforests to the Caribbean coasts, communities across Latin America are adapting to shifting water conditions. Changing weather patterns, population growth and expanding urban development are placing new demands on drinking water systems across the region.
While Latin America is home to nearly one-third of the planet’s water resources, access and availability can vary greatly – especially as aquifer stress, rising demand, and localized water quality concerns grow. By 2040, an estimated 43% of the population in Latin America and the Caribbean will live in areas facing moderate to high water stress.
To build resilience, water operators in the region are looking to digital technologies that optimize water systems. Real-time monitoring, predictive analytics, and connected infrastructure are empowering utilities to reduce losses, safeguard quality, and maximize every drop. Across Latin America, utilities are partnering with technology providers to implement strategies that improve performance, reduce costs, and support long-term sustainability.
What are the biggest water challenges facing Latin America today, and who are the utilities rising to meet them with forward-thinking solutions? Here's a closer look.
1. Extreme weather
Across Latin America, intensifying weather patterns are impacting daily life – disrupting agriculture and energy systems and straining drinking water supplies. In 2024, parts of the Amazon basin saw rivers fall to record low levels. In Peru and neighboring countries, these conditions fueled wildfires, disrupted crops, and slowed transportation and hydroelectric production.
To navigate these challenges, water operators are turning to digital tools that enhance visibility, speed up response, and strengthen long-term resilience.
Customer spotlight: Peruvian utility EPS Grau conserves water through digital leak detection
In Peru’s Piura region – an area known for its agriculture and warm climate – drought has become an ongoing concern. Local utility EPS Grau implemented Xylem Vue to help reduce water loss and protect supply.
Through a pilot program funded by the Inter-American Development Bank (IDB) and the Peruvian Ministry of Housing, Construction and Sanitation, EPS Grau implemented Xylem Vue’s Leak Detection solution.
Using real-time pressure and flow monitoring, the system identified hidden leaks and unauthorized usage across the network. The Xylem Vue platform also integrates data into a singular, operational view – supporting better decision-making and resource management.
The impact: The project detected more than 20 events of leaks or fraud, leading to a 15% reduction in non-revenue water.
2. Non-revenue water loss from aging infrastructure
In a region facing some of the highest water stress levels globally, reducing non-revenue water loss is a fast, effective way to build resilience. For Latin America’s utilities, every lost liter represents more than wasted water – it’s a missed opportunity to recover costs, reinvest in systems, and strengthen service delivery.
Improving water infrastructure not only conserves water for the community, but it also strengthens utilities’ financial sustainability.
Customer spotlight: AQSur increases revenues by 30% and delivers 24/7 water access in Colombia
In northwestern Colombia, water utility AQSur serves six municipalities. The utility faced multiple challenges: low service coverage, limited hours of water access, high levels of non-revenue water, and minimal bill payment – only 5% of customers were paying for service. These conditions strained operations and left little room for investment.
To improve coverage and better serve its community, AQSur partnered with Xylem to implement a suite of digital and operational upgrades. These included:
- Accurate customer data capture through GIS-enabled reading, billing and collection
- A dedicated customer support service to retain paying users
- Modernized infrastructure including micro-metering systems, automated pumping stations and network upgrades
- Targeted staff training to improve internal capability.
The impact: AQSur increased its billed user base by 20%, grew revenue by 30%, and expanded service to 24/7 access. Water quality improved by 130%, and overall system reliability surged by 270% – putting the utility on a stronger path to long-term sustainability.
3. Urban water management
Latin America is the most urbanized region in the developing world. Two-thirds of the population lives in cities of 20,000 inhabitants or more. As cities grow, so do the pressures on water systems – from rising demand to aging infrastructure and water quality concerns.
“Significant investment in technology and infrastructure is required in urban areas to improve water quality and ensure a reliable supply,” says Pizarro. Once again, digital solutions have a key role to play.
Customer spotlight: SADM in Monterrey, Mexico, achieves major water savings
The state of Nuevo León in Mexico, including the country’s second-largest city, Monterrey, often faces extreme drought conditions. To safeguard its water supply for more than 5 million residents, the local utility – Servicios de Agua y Drenaje de Monterrey (SADM) – turned to digital innovation.
With the implementation of Xylem Vue’s Leak Detection and Unified Network Management solutions, SADM gained real-time visibility into water pressure, flow, and consumption across its network.
The platform allows operators to optimize performance by setting smart pressure points and quickly identifying potential anomalies – such as hidden or emerging leaks.
The impact: SADM has achieved total water savings of 17%, with savings of up to 37% in key sections of the pipeline. Operational efficiency and system control have also seen major improvements – positioning the utility to better manage drought and meet the needs of a growing urban population.
By combining deep water expertise with powerful digital solutions, Xylem is helping communities across Latin America strengthen water systems, protect resources, and deliver lasting results.