Understanding Legal Water Availability for Real Estate in Costa Rica

Are you planning on building, remodeling, expanding, subdividing, or developing a property in Costa Rica? One of the most crucial legal requirements for obtaining a building permit from the Municipality (Local Government) is securing access to legal water. In the past, informal water sources were sometimes accepted if lab tests proved potability. However, the government now mandates that only formal water availability documents be accepted. Here’s what you need to know about the legal water options available in Costa Rica:

1. Formal Water Availability Options
   1. 1. Costa Rican Aqueducts Institute (AYA) Water Availability Letter.  This option is viable only if the property is in an area serviced by an existing AYA aqueduct. Often referred to as "city water," it is the most straightforward option when available.
      2. ASADA Water Availability Letter.  An ASADA (Local Association for the Administration of Aqueducts) is a community-managed water system registered with and supervised by AYA. Properties in areas served by a legally established ASADA can obtain a water availability letter from them.
      3. Municipality Water Availability Letter.  Though uncommon, some rural municipalities have built and operated their own aqueducts. If your property is in one of these areas, the local government may issue a water availability letter.

2. Water Concessions Over Private Sources
   1. Concession for a Machine-Drilled Well.  If a property has a legally permitted and registered machine-drilled well, either on-site or on a neighboring property with an easement, the owner may apply for a water concession for human consumption from the Costa Rican Water Department. This process requires:
      1. Hiring a water engineer for technical studies
      2. Proving sufficient water quantity and quality
      3. A concession approval process that takes 12-18 months
      4. Typically, only 1-3 properties can be granted concessions from a single well

   2. Water Concession for a Condominium Project

If a property is part of a formally registered condominium, the development may have a legally granted water concession covering all units. This is only permitted when no other water availability options exist (AYA, ASADA, or Municipality).

• Water Concession Over a Spring, Creek, or River

A property with access to a surface water source (spring, creek, or river) may apply for a concession, provided:

• The water source is within or adjacent to the property (or accessible via an easement)
• The water is proven potable and sufficient
• The same 12-18 month approval process applies
• Surface water sources are more vulnerable to contamination, seasonal changes, and environmental risks

3. Non-Registered Hand-Dug Wells

Though the Costa Rican Housing Department (INVU) included non-registered hand-dug wells as a legal water source in 2021, most municipalities have not accepted them unless registered with the Water Department. However, some local governments, like the Municipality of Cóbano in Nicoya Peninsula, are beginning to formalize this as a legal water source for building permits.

4. Validity and Limitations of Water Availability Letters

Water availability letters from AYA, ASADA, or the Municipality are valid for one calendar year. Extensions may be requested but are subject to infrastructure capacity. Some entities may issue "water capacity letters," which indicate potential future availability but do not guarantee access to water for construction permits.

5. Importance of Water Availability in Real Estate Transactions

Ensuring a property has legal water availability is a critical part of due diligence before purchase. Properties lacking legal water may face significant challenges in obtaining building permits, requiring costly infrastructure investments or prolonged waiting periods.

When considering real estate in Costa Rica, always verify water access before finalizing your investment. If you have any questions or need legal assistance in securing water rights or conducting due diligence, don’t hesitate to reach out to our team of professionals.

Courtesy of INVICTA LEGAL www.invicta.legal