On January 20, 2026, the United Nations University's
Institute for Water, Environment and Health (UNU-INWEH) released a report
titled "Global Water Bankruptcy." The report warns that some regions
of the world have surpassed temporary water stress and crisis and entered a state of
irreversible water bankruptcy—a condition in which they cannot return to
previous water levels. The world is using up its water savings (groundwater, lakes, ecosystems and glaciers) and can not survive on the annual precipitation. Below I have excerpted some of the content and summarized
the major points.
Loss
of Wetlands and Transformation of Water Systems
Over the past fifty years, the world has lost approximately 410 million hectares of natural wetlands. Groundwater now supplies about half of all domestic water and more than 40% of water used for irrigation, directly tying both drinking water security and food production to rapidly depleting aquifers. Around 70% of the world’s major aquifers are experiencing long-term decline, and excessive groundwater extraction has caused significant land subsidence spanning over 6 million square kilometers. In these areas—including over 200,000 square kilometers of urban and densely populated areas where close to 2 billion people live—land is sinking by up to 25 centimeters per year, permanently reducing groundwater storage and increasing flood risk.
The rate of decline in water reserves is only accelerating. The authors report that since 1990 more than half of the earth's major lakes have declined. Mankind has drastically exceeded the planet's capacity to provide clean fresh water. Using technology and mining groundwater created the illusion that the planet's abundance of fresh water was greater than it actually was.
Human intervention over the past century has drastically altered the global water cycle. Construction of dams, diversions, drainage works, and canals has transformed river systems. Changes in land use, elimination of forests, irrigation, and groundwater pumping have shifted evapotranspiration and recharge patterns. Greenhouse gas emissions have warmed the atmosphere and oceans, changing precipitation, snowpack, glacier mass balance, and the intensity of weather extremes. Population growth, urbanization, and economic development have escalated water demand for agriculture, industry, energy, and cities.
Alteration
of River Systems and Wetland Loss
About one-third of global river basins now experience
significant changes in flow, whether from human modification or climate shifts.
In some of the world’s most densely populated river basins—including the Colorado,
Indus, Yellow, Tigris–Euphrates, Murray-Darling, and São
Francisco—environmental flows are routinely reduced or eliminated entirely,
weakening ecosystems’ ability to recover. In many cases, the "normal"
baseline to which crisis managers once hoped to return has effectively
disappeared.
Wetlands, which act as the "shock absorbers" of
the water cycle, are disappearing even faster than forests. Since 1970, about
35% of natural wetlands have been lost, with wetlands vanishing three times
more quickly than forests. As wetlands disappear, their water-storage and
drought-buffering functions are lost as well.
The drying of river corridors and wetlands interacts with
heat and drought, intensifying wildfire risk. Reduced soil and vegetation
moisture, drained peatlands, and decreased surface water buffer contribute to
more frequent and severe wildfires, which in turn affect air quality, carbon
emissions, and watershed function.
In
Summary:
Global
Water Bankruptcy Overview
- The
world is experiencing a state of Global Water Bankruptcy, where water use
over the long term exceeds renewable resources and safe depletion
thresholds.
- This
condition causes irreversible damage to water systems, affecting billions
of people and threatening global stability.
- Water
bankruptcy occurs when both renewable and non-renewable water resources
are depleted beyond safe limits.
- Persistent
water shortages have turned once-episodic droughts into permanent
conditions in many regions.
Importance
of Water for Development
- Water
is fundamental to life. Growing populations and economic development drive
increasing demand for water, impacting food security, public health, and
environmental resilience.
- Water
insecurity is a systemic risk that impedes progress toward the 2030 Agenda
for Sustainable Development.
Consequences
of Water Bankruptcy
- 2.2
Billion people lack access to safe drinking water and sanitation, with over 4
billion experiencing severe water scarcity each year.
- Major
rivers and lakes are shrinking, wetlands are disappearing, and widespread
groundwater depletion leads to land subsidence.
Global
Water Crisis and Its Misconceptions
- The
narrative of a global water crisis has dominated discussions for decades,
focusing on shortages and competition for resources.
- Calling the situation a crisis suggests that improved management can restore past conditions, but many systems are already degraded beyond recovery.
- Human
activities are reshaping the global water cycle and causing significant
environmental changes.
- Major
rivers are drying up, lakes are shrinking, and aquifers are being
depleted, leading to chronic water shortages and declining water quality
as demand continues to increase.
Shrinking
Water Bodies Groundwater and Ecosystem Loss
- Over
half of the world’s large lakes have declined since the early 1990s,
affecting water security for nearly a quarter of the global population.
- Wetlands are disappearing at three times the rate of forests, causing significant biodiversity loss and economic costs.
- Mankind
is using up the groundwater. Groundwater supplies about 50% of domestic
water and more than 40% of irrigation globally, but many aquifers are
being depleted faster than they can recharge.
- Land subsidence and salinization are direct results of unsustainable groundwater extraction, threatening infrastructure and increasing flood risks.
![]() |
| Lake Corpus Cristi in 2012 and 2025 |
Threats
to Food Systems and Livelihoods
- Agriculture
accounts for more than 70% of global freshwater withdrawals, with 3
billion people living in areas facing declining water storage.
- Water
shortages result in food insecurity and economic shocks in many locations,
especially in low- and middle-income countries where agriculture is the
main source of income.
Global
Water Bankruptcy: A New Reality
- The
world is now confronting Global Water Bankruptcy, where long-term water
use exceeds renewable inflows and safe depletion thresholds.
- Many
human-water systems can no longer return to previous baselines, indicating
a shift from crisis to a persistent state of failure.
Importance
of International Cooperation
- The upcoming UN Water Conferences in 2026 and 2028 provide opportunities to recognize Global Water Bankruptcy and realign international priorities accordingly.
- Develop diagnostics to distinguish between water stress, crisis, and bankruptcy.
- Support
vulnerable communities through fair transitions and equitable reforms. However, sharing is not an international strong suit. Governments are more likely to see their water resources as necessary for their citizens.











