The objective of this report is to analyse how investing in transboundary water infrastructure and governance contributes to sustainable and inclusive economic development, unpacking the assumptions being made into testable hypotheses and analysing the evidence for these pathways.

Due to South Asia’s heavy economic activity around its shared rivers, there is significant economic and hydrological interdependence between countries in individual basins. Recent investment in regional power pools supplied by hydropower has extended this to energy systems.  DFID is looking to understand what contribution water investments and their governance has for economic development in the region and the inclusivity of that growth.