Abstract

The year 2022 marked a pivotal moment for water governance in Chile, with significant regulatory reforms such as amendments to the Water Code— transition from water management based on control instruments to one based on economic instrument —the enactment of the Climate Change Framework Law (Law No. 21.455), and the introduction of the Basin Councils public policy, an unprecedent initiative for the country, aimed to strengthen adaptive governance for water resilience. These reforms emerged in the context of a prolonged megadrought that underscored the urgent need for improved coordination mechanisms and integrated strategies to address growing climate, environmental and social pressures. This study examined the implementation and progress of the Basin Councils policy, using the OECD Principles on Water Governance as an evaluative framework focused on characteristics that enhance resilience. By comparing the development of the policy from its inception to the present, the research explored how these councils incorporated adaptive governance practices to enhance institutional capacity and stakeholder collaboration. In less than two years, the halt in public policy progress revealed the substantial challenges it faced, including ambiguities in institutional responsibilities and limited stakeholder inclusion, reflecting the inherent difficulties of transforming deeply entrenched systems. By analyzing Chile’s experience, the study contributes to a deeper understanding of how regulatory frameworks and institutional performance can evolve to address contemporary challenges. These insights offer valuable lessons for public policy design both nationally and in similar watershed contexts, highlighting the importance of embedding resilience in governance reforms to promote inclusive and sustainable practices.