Coping with water scarcity and growing competition for water among different sectors requires proper water management strategies and decision processes. A prerequisite is a clear understanding of the basin hydrological processes, manageable and unmanageable water flows, the interaction with land use and opportunities to mitigate the negative effects and increase the benefits of water depletion on society. Currently, water professionals do not have a common framework that links depletion to user groups of water and their benefits.

Watersheds, especially in the developing world, are increasingly being managed for both environmental conservation and poverty alleviation. How complementary are these objectives? In the context of a watershed, the actual and potential linkages between land and water management and poverty are complex and likely to be very site specific and scale dependent. This study analyses the importance of watershed resources in the livelihoods of the poor in two watersheds in the Colombian Andes.

In the Blue Nile basin, crop cultivation is predominantly rainfed and water availability is highly variable across both space and time. As a result, it often constitutes a limiting factor for reaching full agricultural potential in the region. While one third of the basin is estimated to have no soil moisture limitations, the remaining two thirds are crop water constrained in various ways. Analysis shows that across approximately 40% of the basin available soil moisture is utilized sub-optimally with smart management and crop water limitations can be alleviated.