Financing wastewater collection and treatment on the U.S.- Mexico border

Bilateral negotiations between the United States (U.S.) and Mexico over the scale, location, and financing of water treatment facilities serving border twin cities frequently break down, leaving water pollution and supply uncertainty problems unresolved. Agreements reached have been reactive to immediate health emergencies, limited in scope, and have failed to address market failures that contributed to the environmental problems in the first place. New institutions created to address environmental concerns over North American Free Trade Agreement (NAFTA) have helped both nations plan, build, and finance new facilities in a more coordinated and proactive manner. Yet, the goal of developing locally self-financing municipal water systems on both sides of the border has remained elusive. To illustrate, we use a case study of negotiations over water resources shared by Nogales, Arizona, and Nogales, Sonora