Since the late 1990s Chile has undertaken a major water reform concerning the delivery of water
supply and sanitation services. As a result, provision of water infrastructure has dramatically increased in
line with the regionalisation and privatisation of water companies. Two-thirds of the urban population is
now connected to waste water treatment, and plans call for urban sewage treatment to continue to increase.
Full cost recovery pricing applies to public water supply and sewage treatment, in the context of price
regulation at the regional level and subsidies to the poorest 18-20% of the population. Water prices
increase in summer to reflect water scarcity. Minimum river flow is included in the 1994 General
Environmental Framework Law and is broadly taken into account in the allocation of surface water rights;
more specific legal provisions have been proposed for inclusion in the Water Code. A pioneering
nationwide system of tradable water rights was introduced for surface water and groundwater with the
1981 Water Code, but active trading remains mainly confined to some irrigated areas. There is high
compliance with the World Health Organization drinking water quality standards. Effluent discharge
standards were recently introduced for industry, covering both direct discharges and discharges to sewers.