This publication provides guidance to water-sector decision makers and planners on how to deal with the quality dimension of groundwater resources management in the World Bank's client countries. There is growing evidence of increasing pollution threats to groundwater and some well-documented cases of irreversible damage to important aquifers. This guide has been produced in the belief that groundwater pollution hazard assessment must become an essential part of environmental best practice for water supply utilities. The guide is particularly relevant for the World Bank's Latin American and Caribbean Region, where many countries have initiated major changes to modernize their institutional and legal framework for water resources management, but may not yet have considered groundwater at the same level as surface water, because of lack of awareness and knowledge of groundwater issues and policy options.

This study examines how environmental issues have been addressed in the water sector in Brazil, within the context of activities of the Federal Government, generally, and those implemented under Bank sector operations, in particular. The core focus of the study lies in the management of water quality, as it affects both the users of raw water, and those who are primarily concerned with the disposal of wastewater. The report considers the following three sectoral areas concomitantly - water resources management, water supply and sanitation, and, the environment - thus limiting its review, and focus to those themes which are key to the over-arching issue of water quality. Water resources management in the country relied upon heavy investments in medium, and large scale projects that provided basic infrastructure for water uses. However, these have produced questionable impacts in terms of reducing poverty, and inequality. One of the reasons for this, has been the poor infrastructure management, which despite its importance, has been largely underestimated. While improvements in the utilization of existing infrastructure in the water sector remain critical, it needs to be complemented by incentives to both service providers, and water users. Moreover, low economic, environmental, and social returns from investments in the water sector, reflect the tendency to distract attention from the objectives in the design, and implementation of projects. Thus, an assessment of water quality goals is required, which should be based on systematic evaluations of the costs, and benefits of reaching alternative standards, and explicit social objectives.