Neuquén implements new water usage policy for Vaca Muerta

The government of Neuquén has implemented a new water usage policy aimed at increasing efficiency and promoting the reuse of water within the Vaca Muerta hydrocarbon region. Through Provincial Decree 792/2026, the administration has modified the water canon (fee) paid by oil and gas companies, introducing a tiered increase structure that began on July 1 and will reach its highest levels in January.

This policy change is designed to incentivize companies to invest in technologies for the treatment and recirculation of flowback water used in hydraulic fracturing. According to Leticia Esteves, Secretary of Environment and Natural Resources, oil operators have already begun presenting projects for water reuse as a response to the increased costs. Companies that develop productive projects related to the water cycle may be eligible for canon reductions.

Additionally, the province plans to leverage existing water infrastructure to expand agricultural production. The government is analyzing the possibility of bringing 5,000 hectares under irrigation for crops such as olives, vineyards, and fruit trees using raw river water. A larger initiative, the Corredor del Viento project, aims to eventually incorporate approximately 50,000 hectares under irrigation between Piedra del Águila and Picún Leufú.