Water accounting

Water accounting refers to systematic studies of the status of, and trends in, water supply, demand, accessibility and use within specified domains. Strategies aimed at addressing water scarcity must be grounded in a sound understanding of the water balance, including water supply and demand, and their spatial and temporal dimensions.

Water accounting is based on the premise that effective water management and governance depend on reliable evidence. It is not possible to plan or manage water resources without first measuring and understanding them.

Water accounting and auditing

Water auditing complements water accounting by contextualizing trends on water supply, demand, accessibility and use within governance systems, institutions, public and private expenditure, legal frameworks and the broader political economy of water.

Together, water accounting and auditing (WA&A) complement each other by making more effective use of water-related information to support the design and adaptation of responses to water challenges across diverse biophysical and societal contexts. Water accounting and auditing represent a vital component of water resources planning, particularly under the conditions of water scarcity and increasing uncertainty.

FAO promotes flexible, problem-focused WA&A approaches aligned with the needs and priorities of stakeholders. At the same time, standardized approaches enable objective comparisons over time and space, supporting transparency and accountability in water management. A standardized methodology for rapid water accounting using remote sensing has demonstrated potential across multiple applications. Examples of this approach can be found in the AQUAMAPS database here.

Published in 2016, the FAO Water Report 43, Water accounting and auditing – A sourcebook, sets out the key concepts of water accounting and provides practical advice for its planning and implementation.

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