Ali Zuweid’s political programme
Energy, Infrastructure, Water, Environment and Urban Development
Drinking Water and Sanitation Services and Service Provider Regulation Law
Executive summary
This bill governs the service chain that starts after water-resource allocation and extends beyond laying pipes: drinking-water quality, supply continuity, network efficiency, user rights, pricing, wastewater collection and treatment, industrial discharge, reuse and provider management. It complements, rather than replaces, the Water Resources and National Water Security Law (POL-52), which addresses resources, allocation, basins and wells. This Law focuses on public services from treatment plant to user and from wastewater generation to treatment or reuse.
Iraq’s sectoral functions are currently divided among the General Directorates of Water and Sewerage; Baghdad Mayoralty’s Water and Sewerage Departments; governorates; the Ministries of Health, Environment and Water Resources; and standards and planning bodies. This structure can operate assets but does not itself clearly separate provider, economic regulator and consumer protector. The proposal therefore creates a small regulator that neither operates facilities nor builds projects, but licenses providers, sets performance indicators and tariff methodology, benchmarks results and decides regulatory grievances.
Modern international practice confirms that ‘access’ alone is insufficient: safe services require water available when needed, free of priority hazards and managed preventively from source to consumer. WHO recommends water safety plans and independent health surveillance, while UNICEF’s Iraq programmes identify the need to clarify policy-maker, provider and regulator responsibilities. The proposal translates these into measurable legal obligations.
The Law sets neither uniform prices nor arbitrary national loss or treatment figures before baseline audit, and is not a construction plan. Instead, every provider must maintain a water balance, asset register, five-year plan, quality and continuity standards, tariffs and vulnerable-household protection, permits for industrial discharge and non-sewered sanitation, and emergency plans. The regulator must then publish performance benchmarking.
Current constitutional and legislative context
The constitutional basis combines overlapping competences rather than one article. Article 114 makes environmental, general health and internal water-resource policies shared federal–regional competences, while Article 115 governs precedence over non-exclusive powers in disputes. The Law is therefore a federal framework for services, federal bodies and governorates not incorporated into a region, respecting regional powers and coordination mechanisms.
Tariffs derive an important statutory basis from constitutional Article 28, which requires taxes and fees to be imposed, amended or collected by law. The proposal does not leave service charges to unrestricted administrative decisions: it establishes principles, categories, approval powers and low-income protection, leaving calculations to published regulatory methodology within statutory limits.
In Baghdad, Baghdad Mayoralty Law No. 16 of 1995 identifies two specialist departments: Baghdad Water, responsible for purification, network, operation and quality-control plans, and Baghdad Sewerage, responsible for planning, implementation, operation and maintenance. Elsewhere, the General Directorates of Water and Sewerage in the Ministry of Construction, Housing and Public Municipalities continue implementing and monitoring service projects, alongside devolved or local governorate roles under the Governorates Not Incorporated into a Region Law and amendments.
Public Health Law No. 89 of 1981 remains a principal drinking-water safety and health-surveillance reference. Environmental Protection and Improvement Law No. 27 of 2009 governs water pollution and domestic, industrial and agricultural discharges. Iraqi standards, including the drinking-water standard used by the Central Organization for Standardization and Quality Control, remain technical references requiring updating. This Law does not replace these bodies’ competences but organises their relationships with providers and the economic regulator.
The National Development Plan 2024–2028 treats water and sanitation as core infrastructure and service sectors for reducing spatial disparities. The Ministry and Baghdad Mayoralty continue water production, sewerage and treatment projects. The gap is therefore not merely investment, but stable licensing, asset management, service, tariff, transparency and lifetime accountability rules.
The gap addressed by the Law
| Area | Existing institutional position | Gap addressed |
|---|---|---|
| Drinking-water production and distribution | Multiple central and local bodies own and operate assets. | Unified service licences, service standards, loss measurement, user contracts and performance comparison. |
| Drinking-water safety | Operational testing, health surveillance and national standards. | Mandatory water safety plans, risk notification and separation of operational testing from independent health surveillance. |
| Sanitation | Networks, plants and environmental standards divided among bodies. | Prevent raw discharge, regulate industrial effluent, plan treatment-plant bypasses, and manage non-sewered sanitation and sludge. |
| Tariffs | Historical and local arrangements not always linked to efficiency indicators. | Transparent statutory methodology, protected basic block, targeted support, and no passing waste or fines to users. |
| Consumer protection | Complaint channels vary among bodies. | Standard contracts, response deadlines, compensation, regulatory grievances and strict disconnection rules. |
| Provider regulation | Ownership, operation and oversight overlap. | A regulator that operates no assets, with ownership and operation retained by existing bodies or licensed contractors. |
International data support moving from whether a source exists to whether service is actually safe. Recent WHO and UNICEF materials distinguish basic access from safely managed services, including availability continuity, water quality and wastewater treatment in performance measures. UNICEF in Iraq has expressly highlighted clear policy-maker, provider and regulator responsibilities.
Proposed legislative policy
The proposal adopts regulator–operator separation while retaining existing public operations. The Ministry sets policy and technical standards; Baghdad Mayoralty, governorates and public bodies own or supervise assets; Health monitors sanitary safety; Environment monitors outfalls and sludge; Water Resources allocates raw water; and the new regulator focuses on licences, tariffs, service quality, user rights and transparency.
The proposal neither assumes privatisation nor excludes it as a limited contractual tool. Water resources and core public assets remain governed by public interest. Competitive operation, maintenance, financing or construction contracts may be used where demonstrably better than public alternatives, while licensing, oversight and consumer protection remain outside the commercial contract.
Efficient operation and maintenance require sustainable funding, but the proposal rejects immediate full household cost recovery. It permits gradual transition, a reduced basic domestic block, targeted vulnerable-household support, and mixed capital funding from budgets, loans, grants and partnerships. Fines and administrative waste may not be passed through tariffs.
Text of the bill
Proposed enactment formula: Pursuant to the Constitution, the following Law is enacted to regulate drinking water and sanitation services, ensure safety and sustainability, protect users and regulate providers.
Chapter One — General provisions
Article (1) — Title and scope
This Law shall be called the ‘Drinking Water and Sanitation Services and Service Provider Regulation Law’. It establishes a national framework for drinking-water production, treatment, transport, storage and distribution; wastewater collection, transport, treatment, disposal or reuse; provider regulation; and user protection.Article (2) — Objectives
- Ensure safe, sustainable, equitable and affordable services.
- Separate policy, regulation and oversight from operation wherever possible.
- Improve provider efficiency, reduce losses and strengthen maintenance and asset management.
- Protect public health and environment and prevent untreated wastewater discharge.
- Establish clear, published tariffs linked to cost and efficiency while protecting vulnerable households.
- Allow regulated contracting with the private sector without compromising public ownership of water resources or public oversight.
Article (3) — Definitions
For the purposes of this Law, the following expressions shall have the meanings assigned to them:
- Ministry: The Ministry of Construction, Housing and Public Municipalities.
- Regulator: The Drinking Water and Sanitation Services Regulatory Authority established under this Law.
- Service provider: Any public body, public company, local unit, private company or concessionaire licensed to provide water or sanitation services.
- User: A natural or legal person receiving the service or requesting connection of their property.
- Service area: The geographical area specified in the licence.
- Tariff: Service charges approved under this Law.
- Non-revenue water: The difference between the volume entering the distribution system and the volume properly billed, including physical losses, commercial losses and authorised unbilled consumption.
- Water safety plan: A risk management system covering the supply chain from source to consumer.
- Non-domestic wastewater: Wastewater from industrial, commercial, healthcare or service activities whose characteristics differ from ordinary domestic wastewater.
- Sludge sanitation/sludge management: The treatment, management, use or safe disposal of sludge generated by wastewater treatment plants.
- Non-sewered sanitation service: Collection, transport and treatment of liquid waste and faecal sludge from tanks, pits and licensed on-site systems.
Article (4) — Governing principles
Services shall be managed on the basis of health safety, continuity, efficiency, spatial equity, transparency, accountability, gradual cost recovery, protection of low-income users, the polluter-pays principle, efficient water and energy use, and resilience to scarcity, drought, floods and climate change.Article (5) — Relationship with water resources
A service licence shall confer no independent right to water resources. Abstraction from surface or groundwater sources and allocation of raw water shall be subject to water resources legislation and its competent authority. Providers shall comply with prescribed volumes, quality and abstraction conditions.Article (6) — Distribution of constitutional powers
This Law shall be implemented consistently with the exclusive and shared powers established by the Constitution, particularly general health policy, environmental policy and internal water resources policy. It shall not be interpreted as diminishing the constitutional powers of regions. Within a region, provisions within federal competence and provisions adopted by regional authorities or agreed with federal authorities shall apply in accordance with the Constitution.Article (7) — Administrative scope
Licensing, economic regulation and service standards shall apply to providers affiliated with federal bodies, the Baghdad Mayoralty and governorates not incorporated into a region, and their contractors. Regions may adopt the regulator or establish equivalent regulation and agree on mutual recognition of standards and data.Article (8) — Other legislation unaffected
This Law shall apply without prejudice to the Public Health Law, the Environmental Protection and Improvement Law, the Law on Governorates Not Incorporated into a Region, the Baghdad Mayoralty Law and applicable water resources, investment, partnership and contracting laws. Where technical standards conflict, the provisions affording greater protection to health and the environment shall prevail unless otherwise provided by law.Chapter Two — The right to service, users' rights and providers' obligations
Article (9) — Right to equitable access
Every person within an approved service area shall have the right to request connection and obtain service subject to technical capacity and published connection conditions. Unlawful discrimination between users in comparable technical and contractual circumstances is prohibited.Article (10) — Minimum service for health
Regulations shall define a basic service level ensuring sufficient quantity and quality for essential domestic uses, health and hygiene. Collection measures against a household in financial difficulty shall not entirely deprive it of the minimum service necessary for health before prescribed notice, instalment and social protection measures have been exhausted.Article (11) — Priority for critical facilities
Hospitals, emergency centres, civil defence facilities, care and shelter facilities, schools and facilities designated by regulation shall receive priority in continuity and emergency plans, with backup arrangements proportionate to the level of risk.Article (12) — Service information
Providers shall publish connection conditions, tariffs, quality and continuity indicators, scheduled interruption programmes, complaint and compensation channels, and any health or environmental notice affecting users.Article (13) — Standard contract
The regulator shall issue a uniform standard service contract defining the rights of both parties, meter reading and billing methods, payment deadlines, rules for entering property, responsibility for leaks downstream of the meter, objection procedures, disconnection and reconnection, and compensation.Article (14) — Right to an understandable bill
Bills shall be clear and verifiable and include the actual meter reading or reason for estimation, consumption period, tariff category, volumes, legally prescribed fees, arrears, and objection and payment methods.Article (15) — Right to challenge and inspection
Users may challenge a bill or meter performance. Providers shall test the meter within the period and against the standard prescribed by the regulator. If the error exceeds the permissible technical limit, the account shall be adjusted for the period that can be established, without charging the user for the test.Article (16) — Compensation for interruption
The regulator shall specify cases of automatic compensation or compensation on request for unjustified interruption or repeated service-level failures. Compensation may take the form of a bill reduction, account credit or payment according to a published schedule.Article (17) — Data protection
Consumption, account and location data associated with a user shall be protected and used only for service provision, collection, planning and oversight, or as authorised by law, subject to applicable data protection legislation.Article (18) — Users' obligations
Users shall pay charges due, safeguard meters and connection points, refrain from interfering with the network or unlawfully connecting third parties, report hazardous leaks, and permit regulated access for reading, inspection and maintenance in accordance with this Law.Article (19) — Multi-unit buildings
Instructions shall regulate connection, metering and billing in multi-unit residential and commercial developments, with a gradual transition to individual or smart meters where technically and economically viable.Chapter Three — Governance and institutional regulation
Article (20) — Ministry responsibilities
In coordination with competent bodies, the Ministry shall formulate national water and sanitation services policy for governorates not incorporated into a region, prepare overall sector planning and technical standards for design, operation, maintenance and capacity building, without exercising the economic regulatory powers assigned to the regulator.
Article (21) — Ministry of Health role
The Ministry of Health shall conduct independent health oversight of drinking water safety, approve surveillance and health testing programmes, investigate water-related risks and epidemics, and issue health alerts within its competence. Provider testing shall not replace independent health oversight.Article (22) — Ministry of Environment role
The Ministry of Environment shall enforce environmental laws and limits concerning outfalls, treated water, sludge and environmental assessment, and coordinate with the regulator in monitoring sanitation facility performance and non-domestic discharges.Article (23) — Ministry of Water Resources role
The Ministry of Water Resources shall allocate raw water, issue abstraction permits, protect sources and manage surface and groundwater resources under the relevant legislation, and provide data needed for supply security plans and scarcity conditions.Article (24) — Central Organization for Standardization and Quality Control role
The powers of the Central Organization for Standardization and Quality Control to issue and approve Iraqi standards shall remain effective. Technical regulations for drinking water, materials, pipes and equipment shall be based on applicable Iraqi standards and periodically updated with reference to recognised international sources.Article (25) — Baghdad Mayoralty and governorates' role
The Baghdad Mayoralty and governorates not incorporated into a region, each within its territory, shall own or oversee public assets and provide services directly or through a licensed provider, prepare local investment plans, secure land and rights of way, and coordinate urban development while complying with the regulator's decisions.Article (26) — Establishment of the regulator
A body named the Drinking Water and Sanitation Services Regulatory Authority shall be established under this Law, with legal personality, financial and administrative independence and technical independence in regulatory decisions, attached to the Council of Ministers. It shall not own or operate facilities subject to its regulation.Article (27) — Regulatory board
The regulator shall be governed by a board of five full-time members with expertise in engineering, economics, law, health or the environment, and consumer protection. They shall be appointed by Council of Ministers decision for five years, renewable once. Public nomination procedures and integrity and conflict-of-interest checks shall be prescribed by regulation.Article (28) — Independence of board members
During their tenure, board members shall hold no direct or indirect interest in a regulated provider or contractor. They shall disclose interests and abstain from voting where conflicts arise. Grounds for removal shall be exhaustively prescribed by law or regulations issued under it, protecting independence without preventing accountability.Article (29) — Regulator's powers
- Issue, renew, amend and revoke service providers' licences.
- Approve tariff methodology and review applications for tariff changes.
- Set indicators for service quality, losses, continuity and complaint response.
- Benchmark providers and publish performance results.
- Protect consumers and determine regulatory grievances.
- Monitor operational solvency and licence-related maintenance and investment plans.
- Impose administrative sanctions and corrective measures within the limits of this Law.
- Issue regulatory rules after public consultation.
Article (30) — National coordination
The regulator shall form a standing coordination committee comprising representatives of the relevant ministries, the Baghdad Mayoralty, governorates, the Statistics and Geographic Information Systems Authority and sectoral bodies. It shall harmonise data, planning and standards and manage shared risks, without separate legal personality or an independent budget.Article (31) — Consultation and regulatory decisions
The regulator shall not issue a generally applicable regulatory rule or periodic tariff decision without publishing its draft and reasons and allowing a reasonable period for comments, except for urgent decisions needed for service safety, whose urgency shall be explained publicly.Article (32) — Transparency
The regulator shall publish final decisions, tariff methodologies, performance indicators, sector audit reports, information on material sanctions and consultation records, to the extent compatible with legitimate commercial confidentiality, personal data and national security.Article (33) — Funding
The regulator shall be funded through general budget allocations and licence and regulatory service fees prescribed by this Law. Once the market has stabilised, an annual regulatory fee not exceeding one quarter of one per cent of regulated operating revenues may be collected from providers, as specified in the Budget Law or through a legally authorised mechanism, without generating an unjustified surplus.Article (34) — Audit and accountability
The regulator's accounts shall be subject to the Federal Board of Supreme Audit's oversight and integrity, asset disclosure and conflict-of-interest rules. It shall submit an annual report to the Council of Representatives and Council of Ministers on the sector's condition, performance indicators, tariffs, complaints, investment and risks.Chapter Four — Licensing and governance of service providers
Article (35) — Licensing requirement
No body may systematically provide water or sanitation services to the public within the scope of this Law without a licence issued by the regulator, subject to limited exemptions for small household or community systems governed by a simplified regime.Article (36) — Licence contents
The licence shall specify the service area, services covered, duration, performance levels, asset and maintenance plan, raw water requirements, quality, data and emergency obligations, tariff rules, expansion conditions and grounds for suspension or revocation.Article (37) — Exclusive licence
A public provider or contractor may be granted an exclusive service area where the nature of the network requires. Exclusivity shall not prevent the regulator from imposing efficiency obligations, competitively contracting operation or expansion, or dividing the service area if serious failure persists.Article (38) — Institutional capacity
Licensing shall require evidence of technical, financial and administrative capacity, separate service accounts, an asset, risk and safety management plan, and qualified personnel or a qualified operating contract.Article (39) — Accounting separation
Providers shall keep separate accounts for water, sanitation and unregulated activities. Users of one service shall not bear the costs of an unrelated activity. The regulator shall issue rules for allocating shared costs.Article (40) — Related-party transactions
Contracts and transactions between providers and associated entities or companies shall be on auditable commercial terms and subject to disclosure requirements and safeguards against cost inflation or diversion of revenues away from the service.Article (41) — Engaging a private operator
A public provider may contract a private operator for operation and maintenance, management or specified services under applicable contracting and partnership laws. The provider shall remain accountable to the regulator and users unless the law and licensed contract provide otherwise.Article (42) — Concessions and partnerships
Construction, financing or operation of a facility or service area may be assigned under a concession or partnership contract where value for money and sound risk allocation are demonstrated. Ownership of water resources shall not transfer, and essential public assets shall remain owned by the State or local authority in accordance with the contract and law.Article (43) — Change of control
A licence may not be transferred, nor may a private provider merge or undergo a change in effective control, without regulatory approval following verification of technical and financial capacity and protection of the public interest.Article (44) — Licence termination and continuity plan
Licence expiry or revocation shall not interrupt service. The regulator shall arrange in advance for an interim operator and the transfer of necessary assets, data, staff and contracts to the body designated by law or contract.Article (45) — Small providers
The regulator shall issue a tiered licensing regime for village and small development systems, local desalination plants, public filling points and, where necessary, tanker operators, proportionate to risk and without exemption from health safety requirements.Chapter Five — Planning, asset management and losses
Article (46) — Five-year service plan
Each provider shall prepare a rolling five-year plan covering projected demand, available capacity, shortfalls, replacement and expansion projects, maintenance, losses, meters, emergencies, costs and funding sources, and submit it to the regulator and owning authority.Article (47) — Asset register
Providers shall maintain a geospatial digital register of all principal assets, including age, condition, capacity, failures, maintenance history, rights of way and risks, continuously updated and subject to audit.Article (48) — Asset life-cycle management
Spending shall prioritise existing assets, preventive maintenance and bottleneck removal based on asset condition and failure risk analysis before expanding the construction of new assets unsupported by demonstrated needs.Article (49) — Master plan
Water and sanitation master plans shall be updated periodically and coordinated with land-use, housing, new-city and water resources plans. Major urban expansions shall not be approved without a statement of service capacity or a plan to finance their connection.Article (50) — Non-revenue water
Each provider shall prepare an annual water balance using a uniform methodology, measure production, inflows to distribution zones and billed consumption, and develop a phased programme to address leakage, theft and metering and billing errors.Article (51) — Metered zones and pressure management
District metering, pressure management and leak detection shall be implemented according to economic and technical priorities, with loss indicators linked to regulatory approval of investment and tariff plans.Article (52) — Meters
Actual measurement shall be the basis for billing wherever possible. A phased national plan shall provide for household, commercial, industrial, production and distribution meters, with a system for verification, calibration and replacement.Article (53) — Energy efficiency
Providers shall monitor energy intensity in pumping and treatment and adopt energy audits, efficient pumps, operational controls and energy or biogas recovery where feasible, without compromising health or the environment.Article (54) — Procurement and spare parts
Asset plans shall include policies for critical materials and spare parts, technical standardisation, strategic stocks and equipment obsolescence. Life-cycle costs, rather than purchase price alone, shall be considered.Article (55) — Investment performance audit
The regulator shall not approve inclusion of a major project's cost in the tariff base unless the provider submits an assessment of need, alternatives and life-cycle cost, with benefit indicators. Projects may be reviewed subsequently to exclude waste or inefficient costs from tariffs.Chapter Six — Drinking water, quality and continuity
Article (56) — Health standard
Drinking water at the delivery point shall comply with the applicable Iraqi standard and health regulations. Where no national limit exists for an emerging substance, the competent health authority may adopt a temporary precautionary limit based on scientific evidence and international references until the standard is updated.Article (57) — Water safety plan
Each provider shall prepare, implement and update a water safety plan covering the source, treatment, storage, transmission and distribution up to the delivery point, identifying risks, control and monitoring points, corrective measures and staff responsibilities.Article (58) — Operational monitoring
Providers shall conduct operational and laboratory testing under a risk-based sampling plan. Such testing shall not replace independent oversight by health authorities.Article (59) — Laboratories
Regulatory testing shall be conducted in laboratories meeting accreditation and competence requirements set by the competent authorities. Shared regional or central laboratories may be approved to reduce costs and ensure quality.Article (60) — Notification of non-compliance
Where a health risk or material non-compliance emerges, providers shall immediately notify the health authority and regulator and initiate isolation, operational changes, enhanced treatment or an alternative supply according to the risk level.Article (61) — Public notification
Where non-compliance may affect consumption safety, a clear public notice shall identify the affected area, required precautions, expected duration and update channels. Results indicating an actual public health risk shall not be withheld.Article (62) — Supply continuity
Licences shall specify a target continuity level for each service area and a gradual improvement plan. Interruptions shall be measured by hours, frequency, affected population and causes, distinguishing planned from emergency interruptions.Article (63) — Hydraulic pressure
Providers shall maintain operating pressure ranges ensuring water delivery and limiting backflow contamination and leakage, identify areas with chronically low pressure and establish remedial programmes.Article (64) — Cross-connections and backflow
Measures shall prevent cross-connections and contaminated water backflow into drinking water networks. High-risk premises shall install backflow prevention devices and undergo periodic inspection under the technical code.Article (65) — Building tanks
Regulations shall prescribe design, cleaning and maintenance requirements for water tanks in public buildings, developments and high-risk premises, and the responsibilities of property owners or managers, with awareness and inspection programmes where needed.Article (66) — Tanker supply
When tankers supply drinking water to residents, the source shall be approved and the tanker dedicated, suitable for hygienic transport and traceable. Filling from unlicensed sources or alternating use to transport contaminating materials is prohibited.Article (67) — Local desalination
Desalination or purification plants selling water directly to the public shall undergo simplified health and technical licensing, periodic source and product testing, disclosure of treatment methods, and safe disposal of concentrates or waste.Article (68) — Facility security
Providers shall classify critical facilities and implement proportionate physical and cybersecurity protection, access control, operational continuity and backup communications plans, without publishing sensitive security details as part of general transparency data.Chapter Seven — Sanitation, treatment and reuse
Article (69) — Wastewater collection and treatment duty
Sanitation providers shall collect, transport and treat wastewater in a manner proportionate to population density and health and environmental risks. Network installation without treatment capacity or safe discharge shall not be regarded as a complete service achievement.Article (70) — Prohibition of untreated discharge
Discharging raw sewage into rivers, water bodies, land or networks not designated for that purpose is prohibited except in an extreme emergency threatening life or facility safety, for the shortest possible period, with immediate notification and corrective action.Article (71) — Effluent standards
Treatment plants shall comply with applicable environmental limits and additional licence limits according to the sensitivity of the receiving water and intended reuse. Dilution shall not be used to achieve merely nominal compliance.Article (72) — Non-domestic discharge
Industrial, commercial and healthcare premises shall not discharge non-domestic wastewater into public networks except within published acceptance limits and conditions. Pretreatment, metering, sampling and flow monitoring may be required.Article (73) — Prohibited substances
Discharge of substances posing worker hazards, causing explosions, corrosion or disruption of biological treatment, allowing hazardous pollutants into the environment, or contaminating sludge so as to prevent safe management is prohibited. An updated schedule of substances and limits shall be issued.Article (74) — Pollution load charge
An additional service charge may be imposed on non-domestic wastewater with a higher pollution load than ordinary domestic wastewater, under a regulator-approved formula reflecting additional treatment costs. This shall not exempt compliance with environmental limits.Article (75) — Industrial monitoring
High-risk premises shall install sampling points and measurement or continuous monitoring devices where necessary, and enable providers and oversight bodies to take independent samples.Article (76) — Stormwater networks
Stormwater networks shall be separated from sewers in new developments wherever urban plans and technical codes so prescribe. In existing areas, separation, retention or surface runoff management shall be implemented gradually according to cost and risk analysis, with municipal and provider responsibilities defined.Article (77) — Plant overflow plan
Every pumping and treatment station shall have a plan to prevent overflows and spills during power outages or increased inflows, including backup power, temporary storage, alternative operation and environmental reporting.Article (78) — Sludge management
Sludge management shall follow a hierarchy favouring reduction, treatment, energy or nutrient recovery and safe use where standards are met; otherwise, sludge shall be transported and disposed of at licensed sites. Agricultural use or sale before compliance is established is prohibited.Article (79) — Treated water reuse
Treated water may be reused in agriculture, industry, planting and other appropriate applications under a risk-based quality classification and competent authorities' approval, coordinated with water resources management. Use for purposes presenting greater risk than the treatment level permits is prohibited.Article (80) — Potable use of treated wastewater
Treated wastewater shall not be introduced into drinking water networks through planned direct or indirect reuse except under a special law or regulation based on comprehensive health and environmental assessment, technology and independent oversight ensuring safety equivalent to or greater than conventional sources.Article (81) — Non-sewered sanitation
Tank, sanitary pit and faecal sludge emptying services shall be regulated through vehicle and operator licensing and tracking from collection to the receiving plant. Discharge onto land, into drains, rivers or unauthorised network openings is prohibited.Chapter Eight — Tariffs, financing and financial sustainability
Article (82) — Tariff principles
Tariffs shall be transparent, progressive and affordable, incentivise efficiency and conservation, support sustainable operation, maintenance and asset replacement, and not charge users for waste or unjustified mismanagement.Article (83) — Tariff-setting authority
Providers shall propose tariff structures under the regulator's methodology, with owning-authority approval before submission where required. The regulator shall issue a reasoned approval or amendment decision within this Law's limits. Approved charges shall derive from this legislative authorisation.Article (84) — Tariff categories
Tariffs may differentiate domestic, commercial, industrial, governmental and other uses according to cost, demand and network impact, while avoiding opaque cross-subsidies or unjustified discrimination.Article (85) — Basic domestic block
Domestic tariffs shall include a reduced-price basic block for a quantity set by the regulator based on household size, local conditions and metering capacity. Higher consumption shall be priced to reflect cost and water stress more fully.Article (86) — Support for vulnerable households
Water-related social protection shall be funded through transparent allocations or targeted transfers to eligible households wherever possible. General price reductions shall not be a permanent substitute for targeting. Eligibility records shall be coordinated with the social protection system while safeguarding privacy.Article (87) — Operating cost recovery
Each licence shall establish a realistic timetable to increase coverage of efficient operation and maintenance costs, while major capital investments remain eligible for budget, loan, grant and partnership funding according to asset type and ability to pay.Article (88) — Ring-fenced service revenue
Tariff revenue shall be deposited in provider-dedicated accounts and used first for service operation, maintenance, asset replacement and established obligations. Transfers to unrelated general expenditure shall occur only under the Budget Law after prescribed sustainability requirements have been met.Article (89) — Bulk water
Bulk water tariffs between producers or transmission bodies and distribution providers may be regulated, with contracts and standards governing quantity, quality, pressure, reliability and settlement following failure.Article (90) — Sanitation tariffs
Sanitation charges may be calculated by metered water use, load, activity type or another regulator-approved method. A fixed minimum may cover readiness costs, with due regard to low-income households.Article (91) — Periodic review
Tariffs shall be reviewed on a multi-year regulatory cycle prescribed by regulation. Exceptional adjustments may follow material unforeseen changes in costs, resources or law, subject to transparency and efficiency verification.Article (92) — Electronic collection
Providers shall offer multiple secure payment methods, including digital options, linking collections to the user's account, meter and service point. Unreceipted cash collection or any sums outside the official bill are prohibited.Article (93) — Debt and instalments
Providers shall publish debt policies covering notices, instalments, rescheduling, protected categories and disputes. Penalties, interest or reconnection charges shall be imposed only where grounded in this Law or regulations issued under it and disclosed in advance.Article (94) — Capital financing
Sector projects may be funded through federal and local budgets, development loans, grants, climate funds, partnership contracts and service revenues. Contingent liabilities and government guarantees shall be recorded and subject to financial assessment and debt and budget laws.Chapter Nine — Consumer protection, complaints and disconnection
Article (95) — User service centre
Providers shall offer in-person, telephone and digital channels for reports and complaints, assign each complaint a traceable number and specify response times according to type and severity.Article (96) — Response-time standards
The regulator shall set response periods for network leaks, interruptions, water contamination, sewer overflows, meter failures and financial complaints, with faster standards for health and environmental hazards.Article (97) — Challenging provider decisions
Users shall first submit grievances to the provider. If unresolved within the prescribed period or if the decision is unsatisfactory, they may appeal to the regulator without charge or for a nominal fee refundable where their claim is upheld.Article (98) — Mediation and regulatory determination
The regulator may use mediation or issue binding regulatory decisions in limited-value individual disputes, without prejudice to recourse to the competent court.Article (99) — Non-payment disconnection safeguards
Services shall not be disconnected for debt without a valid bill, at least two notices and an opportunity for instalments or objection. Disconnection shall not proceed while a genuine objection to a disputed sum is under consideration if the user pays the undisputed amount.Article (100) — Protected categories
Regulations shall provide additional safeguards for households including persons medically dependent on water, and for health, care and school facilities. Alternative collection methods, flow reduction or financial guarantees shall be used before complete disconnection wherever possible.Article (101) — Safety-related disconnection
Service may be disconnected immediately where a connection poses a health risk, threatens network safety or involves theft or dangerous tampering. Reasons shall be documented and service restored once the danger is removed and legally required matters settled.Article (102) — Reconnection
Service shall be restored within a prescribed period after the cause of disconnection is removed and sums paid or an instalment plan agreed. Users shall not remain disconnected as punishment once restoration conditions are met.Article (103) — Community representation
The regulator may establish a consumer advisory council comprising representatives of governorates, vulnerable groups, persons with disabilities, consumer protection organisations and the private sector, consulted on service standards and tariffs without replacing elected or oversight bodies.Chapter Ten — Data, resilience and emergencies
Article (104) — Sector database
The regulator shall establish a unified sector data platform receiving provider information on production, quality, losses, energy, assets, interruptions, complaints, revenues, costs and projects, and prescribe verification and audit standards.Article (105) — Open data
Aggregated data and performance, coverage and service-level indicators shall be published in machine-readable formats, excluding personal data and information whose disclosure poses a genuine security or commercial risk.Article (106) — Benchmarking
The regulator shall compare provider performance annually using uniform indicators and publish explanatory rankings or classifications that account for differing local conditions and do not reward cost reductions at the expense of safety or sustainability.Article (107) — Business continuity plan
Providers shall prepare business continuity and disaster recovery plans covering drought, floods, sudden contamination, power outages, major failures, security incidents, cyberattacks and chemical shortages.Article (108) — Backup sources
Emergency plans shall identify alternative water sources or arrangements, critical material stocks, backup power and maintenance-team access routes, and shall be reviewed through periodic tests and exercises.Article (109) — Early warning
Providers shall connect to water resources, weather, health and environmental warning systems and specify predetermined operating levels for deteriorating raw water quality, increased salinity or turbidity, or resource scarcity.Article (110) — Most vulnerable areas
Investment and emergency plans shall prioritise neighbourhoods and rural or peripheral areas with chronic interruptions, dependence on unsafe sources or lack of safe sanitation. Investment impact shall be measured by actual service improvement, not project cost alone.Article (111) — Post-incident reporting
After every major incident, providers shall submit a root-cause report and corrective plan to the regulator and competent bodies. A non-sensitive summary shall be published where the incident has public implications.Chapter Eleven — Inspection, compliance and sanctions
Article (112) — Inspection powers
Authorised regulatory staff, in coordination with health and environmental authorities, may enter regulated facilities at reasonable times, examine records, take samples, copy data and conduct tests, respecting the inviolability of homes and legal safeguards.Article (113) — Corrective orders
Where a licence or service-level breach is established, the regulator shall issue a corrective order specifying the breach, required action, deadline and verification indicator. Deadlines may be shortened or immediate action ordered where health or the environment is endangered.Article (114) — Binding improvement plan
For chronic failure, the regulator shall impose a binding improvement plan with interim targets, funding, executive management and clear responsibilities. Any tariff increase may be conditional on achievement of plan milestones.Article (115) — Administrative sanctions
For provider violations, the regulator may issue warnings, require refunds to users, exclude inefficient costs from tariffs, impose administrative fines within prescribed limits, suspend part of a licence or request temporary corrective management, according to the violation's severity.Article (116) — Provider fines
A licensed provider breaching a final regulatory order, supplying materially misleading data or concealing a serious health incident shall be fined between five million and one hundred million dinars per occurrence, considering the body's size and the violation's impact and recurrence. Compensation or criminal liability under other laws shall remain unaffected.Article (117) — Unlawful connections and tampering
Anyone deliberately creating an unlawful connection, bypassing a meter or damaging it to appropriate the service shall be fined between five hundred thousand and five million dinars, in addition to estimated consumption charges and repair costs. The fine shall double for recurrence within three years.Article (118) — Unlawful discharge
Anyone intentionally discharging prohibited substances or highly hazardous non-domestic wastewater into the network or environment contrary to the licence shall be fined between ten million and one hundred million dinars, in addition to treatment and damage repair costs. The act shall be referred to the judiciary if it constitutes a more serious offence.Article (119) — Obstructing inspectors
Anyone preventing an authorised officer from performing a lawful inspection, destroying a required record or tampering with an official sample shall be fined between one million and ten million dinars, without prejudice to a heavier penalty.Article (120) — Sanction assessment criteria
Fines shall take account of damage, financial gain, recurrence, prompt reporting, cooperation in remediation, the offender's capacity and the sanction's effect on continuity of an essential service. Public providers' fines shall not be passed through tariffs as recoverable costs.Article (121) — Appeals
Regulatory decisions and sanctions may be appealed before the competent court under applicable time limits and procedures. An appeal shall not suspend an urgent safety measure except by judicial decision.Chapter Twelve — Transitional and final provisions
Article (122) — Transitional licensing
Public bodies existing when this Law takes effect shall be deemed temporarily licensed for eighteen months, during which they shall submit asset, area, service and cost data and a compliance plan to obtain a full licence.Article (123) — Asset inventory
Within twenty-four months, the Baghdad Mayoralty, governorates and providers shall complete a uniform digital inventory of assets, land, rights of way, contracts, debts and meters. The regulator shall review its completeness.Article (124) — Baseline
Within twelve months, the regulator shall issue a uniform sector baseline methodology covering coverage, continuity, quality, losses, treatment, reuse, complaints, costs and collection. Final numerical targets shall not be imposed before an audited baseline is established.Article (125) — Priority regulations
Within twelve months of entry into force, regulations shall be issued on licences, service quality, tariff methodology, consumer protection, water safety plans, non-domestic wastewater, data and non-sewered sanitation. They may be issued in stages without suspending fundamental rights established by this Law.Article (126) — Existing tariffs
Tariffs and service charges in force when this Law is issued shall temporarily continue until new tariffs are approved under it. This shall not be construed as validating charges without a legal basis.Article (127) — Existing contracts
Existing contracts and concessions shall continue to the end of their terms, subject to this Law's health, environmental, disclosure, data and emergency requirements. Upon renewal, they shall be amended to conform to the licensing regime.Article (128) — Employees
Establishing the regulator shall not automatically transfer provider employees to it. Necessary numbers of state employees may be transferred under applicable laws, preventing conflicts of interest and preserving providers' operational expertise.Article (129) — Inter-governorate cooperation
Two or more governorates may establish joint arrangements for wastewater treatment, bulk water production, laboratories, sludge management or emergencies, with ownership, costs, responsibility and service levels defined in a contract approved by competent authorities.Article (130) — Instructions and codes
The Ministry, regulator and ministries of Health, Environment and Water Resources may each, within their competence, issue regulations, instructions and technical rules necessary to implement this Law within prescribed periods. These shall be published and made digitally accessible.Article (131) — Legislative impact review
Five years after entry into force, the Council of Ministers shall submit to the Council of Representatives an assessment of the Law's impact, covering regulatory independence, changes in service, quality, losses, treatment, tariffs, collection, investment and complaints, with amendment proposals where necessary.Article (132) — Entry into force
This Law shall enter into force ninety days after publication in the Official Gazette.Reasons for enactment
To ensure citizens' access to safe, sustainable drinking water and sanitation services protecting public health and the environment; unify the regulatory framework for providers while preserving decentralisation and the constitutional distribution of powers; separate policymaking, operation and economic regulation; regulate quality, continuity, tariffs, meters, complaints, industrial discharge, non-sewered sanitation and reuse; improve asset efficiency, reduce losses and waste, and strengthen transparency and accountability, this Law is enacted.
Explanatory memorandum
1. Why does Iraq need a service law rather than another infrastructure project?
Water and sewerage projects are indeed expanding, but an asset's value is not realised at inauguration. It is realised when the asset continues producing compliant water, or when the network collects sewage and carries it to effective treatment, backed by budgets for maintenance, spare parts, meter reading, collection and complaint response. The Law therefore addresses sustained operation, often weaker than the construction stage.
2. Separating resources from services
The proposal separates management of the water resource from drinking water services. Raw water allocation, wells, basins and drought belong under water resources legislation. This Law begins with providers' obligation to obtain a lawful allocation, then addresses treatment, transmission, distribution, quality and billing. The same distinction applies to sanitation: the Law regulates collection, treatment and reuse, while reused resources enter the water balance under the relevant legislation.
3. Why a regulator?
When the owner or operator also sets service levels and tariffs and decides users' complaints, assessing performance becomes difficult even with sound intentions. A separate regulator enables licensing all providers against one standard, benchmarking governorates, setting tariffs based on efficient costs and publishing results. The regulator builds no plant and owns no network, keeping its size and regulatory function bounded.
4. Safety from source to consumer
The latest World Health Organization guidelines issued in 2026 emphasise preventive risk management from source to consumer, health-based targets, water safety plans and independent surveillance. The proposal converts these elements into legal duties while retaining the Iraqi standard as the binding reference, updated through the competent national body.
5. Sanitation is more than a network
The proposal measures sanitation success by safe treatment rather than pipe length. It therefore prohibits raw discharge, regulates industrial wastewater and pretreatment, requires plans for plant overflows and power failures, and brings sludge management and tank and pit emptying into regulation. This matters where a centralised network is neither the fastest nor the least costly solution.
6. Tariffs and social equity
Very low tariffs without alternative funding lead to poor maintenance, interruptions and waste, while high tariffs without social protection deny households an essential service. The Law therefore gradually links prices to efficient costs, establishes a reduced-price basic domestic block and targeted support, and requires clear billing, metering, instalments and disconnection safeguards. This framework provides explicit legislative authority for service charges instead of leaving them to scattered decisions.
7. Data before targets
The proposal does not immediately impose a single loss target or final treatment percentage before an audited baseline exists: Baghdad, Basra, Mosul and small towns differ in network age, sources and density. It does require each provider to prepare a uniform water balance, asset register and comparable indicators. After a year of baseline data, realistic targets can be established and audited.
Responsibilities matrix
| Body | Principal role | What it does not do |
|---|---|---|
| Ministry of Construction, Housing and Public Municipalities | Sector policy, national planning, technical standards and capacity building. | Does not independently approve tariffs for a provider subject to the regulator. |
| Regulator | Licences, tariffs, service indicators, benchmarking, grievances and sanctions. | Does not own or operate a network or plant. |
| Ministry of Health | Independent health oversight, drinking water safety and health warnings. | Does not manage billing or tariffs. |
| Ministry of Environment | Environmental limits, outfalls, sludge, assessment and environmental enforcement. | Does not replace provider licensing or economic oversight. |
| Ministry of Water Resources | Raw water allocation, abstraction permits, source protection and the water balance. | Does not manage users' relationship with drinking water tariffs. |
| Baghdad Mayoralty and governorates | Asset ownership, local planning, direct operation or contracting, and local service monitoring. | Do not exempt providers from national standards or licensing. |
| Service provider | Production, distribution, collection, treatment, maintenance, billing and user service. | Does not set its own final performance standard or exempt itself from oversight. |
Legislative and institutional alignment
| Reference | Relationship to the proposal | Alignment action |
|---|---|---|
| Constitution — Articles 28, 33, 114 and 115 | Fees, environment, health, water resources and shared powers. | Interpret and implement the Law within the distribution of powers; impose no tariff beyond legislative authorisation. |
| Law on Governorates Not Incorporated into a Region No. 21 of 2008, as amended | Decentralisation and management of local departments and services. | Retain local administration while subjecting providers to uniform regulatory standards. |
| Baghdad Mayoralty Law No. 16 of 1995 | Regulates the Baghdad Water and Baghdad Sewerage departments and their powers. | Both departments remain as providers or operating units, obtaining transitional and then full licences. |
| Public Health Law No. 89 of 1981 | Drinking water safety and health oversight. | No repeal; harmonise sampling and notification protocols with the Ministry of Health. |
| Environmental Protection and Improvement Law No. 27 of 2009 | Protection of water against pollution and discharges. | No repeal; link service licensing to outfall compliance with environmental limits. |
| Iraqi drinking water standard | Technical limits for water quality. | Remains the binding reference, periodically updated; the regulator does not create an alternative standard. |
| Proposed Water Resources and National Water Security Law POL-52 | Resources, abstraction, allocation, drought and reuse in the national water balance. | Link provider licences to water allocations and avoid duplicate abstraction permits. |
Transition roadmap
| Period | Action |
|---|---|
| 6 months | Form the regulatory board and begin preparing licensing, consumer protection and data regulations. |
| 12 months | Issue tariff methodology, water safety plans, non-domestic wastewater standards and the national baseline methodology. |
| 18 months | Initial transitional licences expire; submit compliance plans and obtain full or conditional licences. |
| 24 months | Complete the digital inventory of assets, meters, rights of way and performance databases. |
| 30 months | Publish the first complete national provider benchmarking exercise after an audited data cycle. |
| 5 years | Review the Law's impact and submit a report to the Council of Representatives. |
Financial and implementation impact
The Law does not create a new national water or sewerage company or transfer ownership of networks and plants from existing bodies. Its direct fiscal impact therefore centres on establishing a modestly sized regulator, harmonising data and building licensing, benchmarking and consumer protection systems. The regulator may begin with a budget allocation and later recover part of its cost through a limited regulatory fee authorised by law, without turning it into a consumption tax.
The larger costs fall on providers, but most represent a shift from breakdown response towards preventive maintenance, metering and asset management rather than separate new expenditure. Priorities include production, distribution and consumer meters where feasible; GIS and asset registers; laboratories or laboratory contracts; leak detection; facility protection; industrial discharge monitoring; complaint management systems; and backup power for critical facilities.
The Law gives no single national capital requirement estimate because that requires an up-to-date inventory for each governorate, network lengths, plant condition, loss rates and coverage. Instead, it requires a five-year plan from each provider and a uniform baseline, then links tariff and investment approvals to actual data. This reduces the risk of inflated programme costs or repeated projects lacking adequate operating budgets.
Compliance and regulatory indicators
| Area | Indicator | Purpose |
|---|---|---|
| Safety | Share of compliant drinking water samples, number of quality incidents and notification times. | Measure safety rather than relying solely on plant capacity. |
| Continuity | Average supply hours, interruption frequency and population affected. | Distinguish nominal access from actual service. |
| Efficiency | Non-revenue water, energy consumption per cubic metre and operating costs. | Link tariffs to provider efficiency. |
| Assets | Share of assets registered and inspected, network failures and preventive maintenance implementation. | Prevent investment deterioration after construction. |
| Sanitation | Collected, treated and compliant flows, spills and safe reuse volumes. | Measure actual environmental and health effects. |
| Consumers | Complaints per thousand accounts, resolution time, billing accuracy and compensation. | Measure the quality of the service relationship. |
| Financial sustainability | Collection rate, coverage of efficient operation and maintenance costs, and arrears. | Identify the financing gap transparently. |
Brief international comparison
| Practice | Reference | Iraqi adaptation |
|---|---|---|
| A regulator separate from operators, measuring service quality and benchmarking providers | Utility regulation models such as ERSAR and specialised economic regulators. | A small regulator owning no assets, publishing performance and approving tariffs and licences. |
| Water safety plans from source to consumer | WHO Guidelines for Drinking-water Quality 2026 and Water Safety Plan Manual. | Require plans from all providers with independent health oversight. |
| Multi-year tariffs based on efficient costs | Utility regulation in various countries. | Published methodology, a basic domestic block, targeted support and exclusion of waste and fines. |
| Regulation of industrial wastewater before network entry | Common practice in modern sanitation utilities. | Acceptance limits, pretreatment, load measurement and additional service charges for higher costs. |
| Non-sewered sanitation managed as a complete service chain | Modern WASH practices for small towns and unserved areas. | License emptying vehicles, track them to receiving plants and prevent indiscriminate dumping. |
Sources and references
- Iraqi Council of Representatives — Constitution of the Republic of Iraq, 2005.
- Ministry of Justice — Second Amendment to the Law on Governorates Not Incorporated into a Region No. 21 of 2008, Iraqi Official Gazette, 2013.
- Ministry of Justice — Third Amendment to the Law on Governorates Not Incorporated into a Region No. 21 of 2008, Iraqi Official Gazette, 2018.
- Baghdad Mayoralty — Baghdad Mayoralty Law No. 16 of 1995 and the powers of the Baghdad Water and Baghdad Sewerage departments.
- Ministry of Construction, Housing and Public Municipalities — Ministry project dashboard: General Directorate of Water and General Directorate of Sewerage.
- Ministry of Planning — National Development Plan 2024–2028.
- Ministry of Planning — Discussion of the water and sanitation sector paper during preparation of the National Development Plan 2024–2028.
- Central Organization for Standardization and Quality Control — Study of drinking water quality in Baghdad based on Iraqi Standard 417.
- World Health Organization — Guidelines for Drinking-water Quality, fourth edition incorporating three addenda, 17 June 2026.
- World Health Organization — Water Safety Plan Manual, second edition.
- UNICEF Iraq and the General Directorate of Water — Measures to protect resources and ensure safe water, 23 March 2025.
- UNICEF Iraq — Water, sanitation and hygiene programme: clarification of policymaker, provider and regulator responsibilities.
- UNICEF Data — Iraq: drinking water and sanitation indicators.
- World Health Organization — Iraq data page and drinking water, sanitation and wastewater treatment indicators.
- UNICEF Iraq — Urgent call to protect Iraq's rivers and children's health, 28 September 2026.
- World Bank — Baghdad Water Supply and Sewerage Improvement Project, Implementation Status Report No. 20, 17 April 2026.
- ILO NATLEX/FAOLEX — Iraqi Environmental Protection and Improvement Law No. 27 of 2009.
- ECOLEX/FAOLEX — Iraqi Public Health Law No. 89 of 1981.
- ERSAR — Regulation of water and sanitation service quality and provider performance benchmarking in Portugal.
Electronic sources accessed: 7 October 2026. Sources inform the diagnosis and explanatory memorandum; they do not replace the official text published in the Iraqi Official Gazette for final judicial or legislative verification.