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You are at:Home » Global Water Bankruptcy: Understanding the Looming Crisis
Global Water Bankruptcy Understanding the Looming Crisis
Science January 20, 2026

Global Water Bankruptcy: Understanding the Looming Crisis

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Iran Faces Severe Water Scarcity at Latian Dam

BAHRAM/Middle East Images/AFP via Getty Images

The world is entering an alarming “era of water bankruptcy” fueled by overconsumption and climate change. Approximately 75% of the global population lives in regions confronting severe water scarcity, pollution, and drought.

This is the finding of a United Nations report, which concludes that many regions are extracting excessive amounts from their annual rainwater and snowmelt, leading to the rapid depletion of groundwater reserves that may take thousands of years to replenish. Notably, 70% of major aquifers are now classified as depleted, and many changes are irreversible.

Key contributors to this crisis include the expansion of agriculture and urbanization into arid areas, which are becoming increasingly dry due to climate change. For instance, around 700 sinkholes have formed in Türkiye as a consequence of groundwater extraction. In addition, devastating sandstorms induced by desertification have resulted in numerous casualties in Beijing.

“Our surface water account is now empty,” asserts Kave Madani from the United Nations University Institute for Water, Environment and Health. “The inherited savings from our ancestors—groundwater and glaciers—are now exhausted. We are witnessing global signs of water bankruptcy,” he explained.

Approximately 4 billion people face water scarcity for at least one month each year, which is exacerbated by immigration, conflict, and insecurity. Madani noted that while a currency collapse triggered recent protests in Iran, underlying water shortages were also significant contributors.

Iran has experienced its driest autumn in 50 years. This situation is further aggravated by the rapid proliferation of agricultural dams and wells, contributing to the near-complete desiccation of Lake Urmia, once the largest lake in the Middle East. The Iranian government is now considering evacuating Tehran and is exploring cloud-seeding methods to induce rain.

In the United States, the Colorado River, which is crucial for the water supply in much of the western region, has experienced an estimated flow reduction of 20% in the past 20 years. This decline is mainly attributed to decreased rainfall and increased evaporation, alongside excessive water repurposing for beef and dairy production. Cities like Los Angeles rely heavily on this water for drinking, despite the diminishing flow reaching the ocean.

The river’s primary reservoirs are currently at about 30% capacity, and projections indicate they could reach “dead pool” status (10-15% capacity) by 2027, according to research conducted by Bradley Udall from Colorado State University. Negotiations over water allocation among states stalled last year.

Experts emphasize that increasing agricultural water efficiency often leads to greater water consumption. Improvements such as drip and sprinkler irrigation allow for gradual water absorption, yet more water also runs back into rivers from flooded fields. Therefore, it is essential to reduce overall water consumption alongside enhancing efficiency, Udall asserts.

“Agriculture consumes 70% of our water resources, hence effective solutions must originate from the agricultural sector,” he adds. “A reduction in agricultural use is crucial, and this issue is prevalent worldwide.”

Approximately half of the global food production occurs in areas where water storage is diminishing. Addressing agricultural water use will also necessitate economic diversification to support the livelihoods of over 1 billion individuals, predominantly in low-income nations, which often export food to high-income countries.

“Water is integral to the economy, as it significantly impacts public health,” states Madani. “If jobs are lost, it can lead to social unrest similar to what we are witnessing in Iran.”

Even regions with sufficient rainfall are experiencing increased water extraction by data centers or contamination from industries, sewage, and agricultural runoff. Wetlands equivalent to the area of the European Union are being lost primarily due to agricultural conversion, incurring an estimated global cost of $5.1 trillion in ecosystem services, such as flood mitigation, food production, and carbon storage.

In Bangladesh, approximately half of the nation experiences well water contamination due to arsenic, exacerbated by rising sea levels and saltwater intrusion. In Dhaka, tap water and the ominously dubbed “river of death” are polluted by chemicals linked to fast-fashion product manufacturing intended for export to Europe and North America.

“It is widely known that the river is tainted by the garment industry,” notes Sonia Hawke from Oxford University. “However, strict regulations could deter buyers, creating a conflict of interest.”

In many instances, vital water bodies—including rivers, lakes, wetlands, and aquifers—struggle to return to their previous conditions. Additionally, significant glacial melting has diminished water supplies for hundreds of millions.

Madani emphasizes the necessity for humanity to adapt to reduced water availability through improved water management strategies. However, this starts with accurately assessing water resources and consumption, including household meters, well usage, and waterway health.

“Efforts like [cloud-seeding] may be futile if we don’t understand our water system’s metrics. Effective management begins with measurement,” Madani concludes.

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Source: www.newscientist.com

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