Uruguay is the only country in Latin America that has achieved quasi-universal coverage of access to safe drinking water supply[1] and adequate sanitation.

Given these achievements, the government's priority is to improve the efficiency of services and to expand access to sewerage, where appropriate, in areas where on-site sanitation is used.

[5] Like many other developing countries Uruguay sought private sector participation in water supply and sanitation to improve efficiency and service quality.

[6] In 2005 the government passed law 17.930 with the objective of improving the effective participation of users and civil society in planning, management and control of activities in the sector.

[8] The drought or water crises in Uruguay from 2022 to 2023 has been attributed to the La Niña phenomenon,[9] which was further exacerbated by the effects of climate change, including rising temperatures.

[10][11] The crises resulted in significant impacts on the local economy, and large portions of the population not having access to clean, drinkable water.

[17] By the end of January 2023, before the water crisis in the metropolitan area, the drought had already impacted 75,000 people across five departments in the country's interior.

The government of Uruguay intends to establish a comprehensive legal and regulatory framework for the water supply and sanitation sector through a new law.

It also plans to develop a policy on appropriate sanitation standards and to further improve the efficiency of OSE by stimulating internal competition and reducing unaccounted for water.

[28] The national water and sewer company Administración de las Obras Sanitarias del Estado (OSE), created in 1952, does not receive direct subsidies from the government.

[31] The average annual investment per capita between 1997 and 2003 was higher than in other Latin American countries like Argentina, Peru, Colombia and Mexico.