Panama’s community water boards: A model for community-led rural governance (2014–present)

Panama’s rural water boards or Juntas Administradoras de Acueductos Rurales (JAARs) are community-led, non-profit organizations that manage rural drinking water systems. While the JAAR model existed for decades, a 2014 regulatory framework formally recognized them as co-responsible for expanding access in areas not served by the state utility. Through democratic local governance, they ensure services reflect community needs, reduce territorial exclusion, and promote greater equity in rural areas. Estimates suggest that 4,000 JAARs actively operate across Panama’s rural areas, where they co-manage public water infrastructure alongside the state.

In Panama, the contrast between urban and rural living conditions is stark.¹ While most urban centers benefit from piped water services managed by the state utility, many rural and Indigenous communities have long been excluded from these systems. This gap is particularly visible in the Comarcas—autonomous Indigenous territories—where geography, poverty, and historic neglect converge.² In these areas, access to clean drinking water is not only a daily challenge, it is symptomatic of deeper structural inequality.

In response, many communities took matters into their own hands. Neighbors came together to capture water from springs, lay makeshift pipes across hillsides, and establish their own norms for maintenance and use. These grassroots initiatives, strengthened by international support,³ evolved into the Rural Water Supply Boards (JAARs), which are local water boards created and run by the communities themselves.

For example, in the remote community in the Emberá territory of Darién,⁴ the residents—many of them farmers and artisans—came together in an open assembly after years of relying on river water and collecting rain. They elected a water board, which includes a president, secretary, treasurer, and two board members. This JAAR will now be responsible for the community’s aqueduct, spring catchment, and rainwater system. They meet monthly to review water quality, organize maintenance days, and decide how to use small tariffs collected from each household (typically USD 1–USD 3 per month).⁵ When major repairs are needed, the board may request support from the Ministry of Health (MINSA), a local non-governmental organization (NGO), or even a municipal office. Most importantly, decisions—whether about raising tariffs, building a new tank, or fixing a leak—are made in open community assemblies, where every voice matters.

Leadership, Inclusion and Diversity

The policy aims to place women and traditional cultural patterns at the center of these models, especially for Indigenous communities. In many communities, women serve as JAAR presidents, treasurers, or lead chlorination efforts.⁶ In Indigenous areas, JAARs often work together with traditional authorities—congresses, caciques, or village leaders—to ensure water governance respects cultural norms and community hierarchies.

Implementation

In 2014, Panama formally recognized this model by issuing Executive Decree No. 1839, which established the legal and regulatory framework for JAARs as non-profit, public-interest organizations.⁷ The decree empowered JAARs to work jointly with the state to manage, operate, maintain, and expand rural drinking water systems. This recognition didn’t just regulate infrastructure, it validated community-led governance as a legitimate form of public service delivery.

The JAARs are run by the local community with oversight from MINSA and the National Public Services Authority (ASEP), with support from development partners such as UNICEF, the United Nations Development Programme (UNDP), and multilateral banks. These institutions help provide technical assistance, training, and compliance monitoring. In Indigenous regions, coordination with traditional authorities and regional congresses is critical to ensure that the JAAR model aligns with cultural governance structures.

Investment

Specific cost data associated with JAARs is not available; however, two programs list related costs within broader project budgets.

1. The World Bank’s completion report outlines a rural water project in Panama with an estimated cost of USD 23.4 million.⁸ This funding supported water supply, sanitation, and hygiene improvements, including specific components to strengthen JAARs through training, the development of board associations, and community monitoring systems.
2. In parallel, a related USD 15 million investment—from the Inter-American Development Bank, the Spanish Fund for Cooperation and local counterparts—benefited more than 3,500 Indigenous and rural households.⁹ While not exclusive to JAARs, the program is closely aligned with efforts to build the capacity of community water boards.

Assessment

The JAAR model addresses critical service gaps by operating in communities that the state utility cannot reach due to geographic, logistical, or financial constraints. They provide reliable access to drinking water in rural, remote, and Indigenous areas, where exclusion from infrastructure and public services is most severe. In these settings, JAARs are more than service providers—they are democratic institutions embedding decision-making in local hands, and providing opportunities for civic participation and leadership in communities historically left out of public systems.

In terms of success, the program’s design and implementation have remained consistent and highly relevant to the state’s development priorities, particularly in efforts to conserve the Panama Canal Watershed while supporting the well-being of its rural communities.¹⁰ The model continues to promote community participation throughout all phases of the project cycle, grounded in a grassroots approach that integrates gender and cultural perspectives, as well as a strong commitment to environmental sustainability.

Although there are approximately 3,742 JAARs operating nationwide and benefiting over 18,000 people, rural communities continue to face major service gaps, particularly in terms of continuity, water quality, and system adequacy. In addition, notable deficiencies have been identified among community providers, and the sustainability of services is at risk due to limited technical support.

While the Ministry of Health has played a central role in promoting the JAAR model, territorial dispersion and the limited resources of its decentralized offices have made it difficult to provide the ongoing training, monitoring, and system maintenance that communities require. This disconnect leaves many JAARs isolated and reactive, rather than preventive and strategic in their operations. However, reliable data on the number of underperforming JAARs is yet to be collected.

Additional Information

Currently, regular financing for JAARs typically comes from three sources: (1) small monthly tariffs paid by community members, (2) investments from the national government or development agencies for infrastructure improvements, and (3) in-kind community labor, NGOs, or local fundraising. Importantly, most JAARs do not recover full investment or operational costs—underscoring the need for continued public investment, technical support, and policy reforms to ensure their long-term sustainability.

References copy & paste cheat sheet

A river running through a lush green countryside © Unsplash/mae black.

Tags

• High-Income Country Climate & Environment
• Indigenous People
• Land
• Rural Areas
• Social Protection