The report provides evidence-based assessment and policy recommendations in support of Mexico's water reform. It analyses implementation bottlenecks and identifies good practices in four key areas considered as essential drivers for change in the water sector of Mexico: multi-level and river basin governance; economic efficiency and financial sustainability; and regulatory functions for water supply and sanitation. This report is the result of a one-year policy dialogue between the OECD and Mexico, after the adoption of the 2030 Water Agenda as a strategic and long-term vision for Mexico's water sector.