This chapter provides an overview of who does what, at which level and how in Hungarian water governance. The country manages its water resources at international, national, local and hydrological scales within a complex multi-level governance framework. The legal foundation for water management is anchored in the 1995 Water Management Act, and continuously updated through the transposition of EU directives, amendments, and decrees. Hungary has also established national and transboundary information systems to strengthen water management and climate adaptation.
Water Governance for Climate Resilience in Hungary
Abstract
As a unitary state with 19 counties (vármegyék) and 3 178 municipalities (települési önkormányzatok), Hungary manages water resources through a multi-level governance system (Figure 2.1). The country is part of the Danube River Basin, a transboundary basin flowing across 19 countries. Hungary counts four sub-catchments (alvízgyűjtő területek) (aggregated sub-basin units) and 12 sub-basins (almedencék) (smaller operational units) for internal planning and operational purposes.
The Ministry of Energy has been responsible for water policy since June 2024. It oversees the General Directorate for Water Management, Hungary’s main operational body for water management, and co-ordinates with the Ministry of Interior’s Directorate General for Disaster Management on water-related risks. Overall, eight out of 12 ministries are directly or indirectly involved in water policy. An Inter-Ministerial Committee on Water Management established in 2024 aims to promote integrated water management across sectors, places and ecosystems, while the Inter-Ministerial Co-ordination Committee for Disaster Management manages emergency response to disasters such as floods, inland excess water and droughts. In 2025, a Drought Protection Task Force was established to prepare and co-ordinate government measures for mitigating drought impacts and monitoring their implementation.
Two independent bodies support water governance: the Hungarian Energy and Public Utility Regulatory Authority, which regulates water supply and sanitation services, and the Office of the Commissioner for Fundamental Rights, whose Ombudsman for Future Generations monitors environmental and water-related rights. Additionally, the National Water Management Council functions as a central advisory body. Together with subnational Water Management Councils, it supports the General Directorate for Water Management by engaging stakeholders and reviewing key water policy documents to ensure coherence.
At the subnational level, 12 Territorial Water Management Directorates are responsible for operational tasks related to water resources management, flood protection and drought response. They operate within hydrological functional areas (sub-basins) rather than administrative boundaries (e.g. counties) under the supervision of the General Directorate for Water Management. Water permitting functions are carried out within these sub-basin functional areas by 12 County Government Offices, which are deconcentrated arms of the central government acting as water authorities. Water Management Councils at four sub-catchment and 12 sub-basin levels serve as consultative platforms and advisory boards for water management. Municipalities are responsible for developing, authorising, and overseeing water supply and sanitation infrastructure and services. Hungary has 34 state or municipally owned water and sanitation operators.
International and transboundary water governance are fundamental pillars of Hungarian water governance. As a landlocked country sharing borders with seven neighbours, located along two major international river basins - the Danube and the Tisza - Hungary plays an active role in cross-border water management. Co-operation is pursued primarily through the International Commission for the Protection of the Danube River (ICPDR) and various Transboundary Water Committees. These mechanisms are underpinned by joint planning processes, harmonised regulatory approaches, and shared objectives aimed at ensuring sustainable and equitable management of shared water resources.
National level
Ministry of Energy
The Ministry of Energy (Energiaügyi Minisztérium, EM) is the lead government body responsible for water management and protection. The EM is also responsible for energy policy, environmental protection, the circular economy, sustainable development and climate policy. The Ministry supervises water utility services as well as national and subnational water management bodies, such as Territorial Water Management Directorates. It also acts as the supervisory authority for water and environmental permits and licenses issued by national, county and district environmental protection authorities. It is not responsible for the authorisation of agricultural groundwater abstraction facilities, which is the responsibility of the Ministry of Agriculture.
Within the EM, the State Secretariat for Water Management co-ordinates national and subnational water governance and oversees water-related legislation and policy. The State Secretariat for Circular Economy and Climate Policy ensures the strategic and regulatory conditions for domestic climate policy in line with EU and international objectives, including through the implementation and monitoring of the Second National Climate Change Strategy (NCCS-2) and its Climate Change Action Plan (CCAP). The State Secretariat for Environment is responsible for environmental strategy development and implementation. It works with the National Environmental Protection Council (Országos Környezetvédelmi Tanács, OKT), an advisory body to the government tasked with providing social and scientific foundations for environmental protection (OKT, 2025[1]). It also supervises the Hungarian Meteorological Service (HungaroMet), which runs the National Adaptation Centre and works with the EM on climate-related issues (EM & KTM, 2025[2]).
Under the supervision of the EM, the General Directorate for Water Management (Országos Vízügyi Főigazgatóság, OVF) is Hungary’s central budgetary body for water management, with core responsibilities in co-ordinating flood control, protecting waterbodies and mitigating damage caused by inland excess water. The OVF oversees national hydrographic monitoring, operates integrated data and information systems, and supervises Hungary’s 12 Territorial Water Management Directorates, contributing to the development of their strategic objectives. The OVF plays a key role in planning and implementing water-related projects and supports the development of national and sectoral strategies such as the National Water Strategy. It is also responsible for co-ordinating the preparation and submission of River Basin Management Plans (RBMPs) to the European Commission at national and sub-catchment levels, in line with the requirements of the European Union (EU) Water Framework Directive (WFD). At international and transboundary levels, the OVF contributes to the International Commission for the Protection of the Danube River (ICPDR), representing Hungary in biannual meetings and in all seven of its expert groups, and takes part in seven Transboundary Water Committees. The Director-General of the OVF is supported by the Water Science Council, an advisory board whose functioning is governed by an internal Director-General Instruction.
The National Waterworks (Nemzeti Vízművek Zrt.), also under EM supervision, exercise the government’s property rights and obligations related to state-owned water supply and sanitation service providers and infrastructure. The 2011 Act on Water Utility Supply and other acts provided the legal foundation for the integration and centralisation of Hungary’s water supply and sanitation sector, reducing the number of service providers from 450 to 34 by 2024, 17 of which are majority state-owned and the remainder municipally owned (Szabó and Garcia Quesada, 2017[3]). The rationale for these reforms included achieving economies of scale, addressing municipal financial constraints, and enhancing centralised co-ordination (National Waterworks, 2021[4]).
Ministry of Public Administration and Regional Development
The Ministry of Public Administration and Regional Development (Közigazgatási és Területfejlesztési Minisztérium, KTM) co-ordinates regional development policy, oversees the use of EU funds, and supervises subnational government entities including counties, municipalities and county government offices (CGOs). Although it does not have specific responsibilities for water, the KTM’s role in regional planning and infrastructure development often intersects with water policy.
The KTM’s State Secretariat for Municipalities co-ordinates municipalities and oversees their responsibilities, such as the development and implementation of water hazard plans and climate change adaptation measures. The State Secretariat for Public Administration supervises CGO responsibilities, which include permitting and licensing processes related to water abstraction, water use, and wastewater discharge. It works closely with the Lechner Knowledge Centre, a state-owned non-profit organisation supporting the work of governmental institutions and specialising in geospatial data collection and analysis, including critical spatial information on water resources, land use planning, and flood risk mapping. The State Secretariat for European Union-funded Developments ensures the implementation of EU development programmes through the National Development Centre, a budgetary body that co-ordinates national development programmes structured around the Operational Programmes framework. Given Hungary’s significant reliance on EU funding for water management and infrastructure development, the Secretariat plays a key role in directing and co-ordinating water-related investments. It also oversees the Hungarian Development Promotion Office, which supports applicants to EU funding (including municipalities) from the initial concept and vision to the final submission of applications.
Ministry of Interior
The Ministry of Interior (Belügyminisztérium, BM) is responsible for public order and safety, disaster risk management, civil protection, and the governance of local public services. The BM was the lead ministry for water policy before June 2024.
The BM oversees two entities responsible for water-related disasters and health issues. First, the National Directorate-General for Disaster Management (Országos Katasztrófavédelmi Főigazgatóság, OKF), Hungary’s central authority for disaster management (Box 2.1), is responsible for supervising the civil protection system, setting standards for disaster risk prevention, emergency response, and disaster management professionals, as well as addressing the anticipated impacts of natural disasters and industrial and nuclear accidents (OKF, 2025[5]). The OKF operates as a national law enforcement body, with 19 County Directorates, one Capital Directorate and 65 local disaster management offices working as local law enforcement bodies. Second, the National Centre for Public Health and Pharmacy (Nemzeti Népegészségügyi és Gyógyszerészeti Központ, NNGyK) is a central budgetary body responsible for monitoring water quality and establishing hygiene, monitoring, and analytical standards for drinking and bathing water (NNGyK, 2025[6]).
Disaster management in Hungary is governed by at different levels of governments as established by the 2011 Act on Disaster Management and implementing Decree 234/2011 (XI.10.).
In the event of a disaster or declared emergency, the Inter-ministerial Co-ordination Committee for Disaster Management (Katasztrófavédelmi Koordinációs Tárcaközi Bizottság, KKB), led by the BM, assumes operational leadership. The KKB directs emergency response efforts through a multi-sectoral work plan and includes representatives from relevant ministries and central agencies such as the police, the National Tax and Customs Administration, and the National Meteorological Service. Its operational arm, the National Emergency Management Centre (Nemzeti Veszélyhelyzet-kezelési Központ, NVK) implements government decisions via national and subnational bodies. During emergencies, a temporary Operative Body to the Directorate-General for Disaster Management co-ordinates response planning, data analysis, and technical support with staff from the BM OKF, relevant ministries, and local units.
At the subnational level, Territorial Defence Committees (Területi Védelmi Bizottságok, TVB) operate regional emergency centres, with subordinate Local Defence Committees (Helyi Védelmi Bizottság, HVB) at district level. These committees support co-ordination across local governments, disaster management authorities, water management bodies, public health agencies, law enforcement, and civil society actors. Mayors are the legally mandated leaders of local disaster management and planning. They are responsible for producing Municipal Disaster Management Plans, which outline local risk assessments, preventive and response measures for natural hazards, co-ordination roles, and resource allocation to ensure effective emergency preparedness and resilience. Hungary’s 3 178 municipalities are grouped into 197 districts and classified into three disaster risk levels, which influence funding and investment planning. These classifications are reviewed based on infrastructure and water management performance. Municipal Disaster Plans, prepared by mayors in consultation with local actors, are assessed by Territorial Defence Committees and incorporated into the Disaster Risk Management Planning System.
The Flood and Inland Water Protection Working Committee, chaired by the Deputy Technical Director-General of the OVF, takes on this role during flood or excess inland water events (Figure 2.2). The Committee’s operational arm, the National Water Management Staff (Országos Vízügyi Irányító Törzs, OVIT) – consisting of the OVF’s own staff – is activated when multiple Territorial Water Management Directorates must co-ordinate to ensure the efficient flow of information and redistribution of equipment and personnel. The OVIT oversees the 12 Territorial Water Management Directorate’s technical flood protection measures, including hydrometeorological monitoring, forecasting, early warning, and oversight of flood protection infrastructure. During flood emergencies, territorial and local protection committees and mayors are tasked with the public administration aspects of flood response.
Note: Public administration tasks include the provision of manpower, materials and equipment necessary for the protection of the population and material assets; ensuring the safety of the population and material assets at risk (rescue, evacuation); providing medical care to the population and defence forces and social care for evacuees. The technical management of flood protection refers to hydrometeorological monitoring, forecasting and warning, operation of flood protection facilities and the construction of temporary protective structures.
Ministry of Agriculture
The Ministry of Agriculture (Agrárminisztérium, AM) oversees policy and regulation in agriculture, rural development, nature conservation, the food industry, forestry, and land affairs.
The Ministry’s Parliamentary State Secretariat is responsible for agricultural water management, including the authorisation of groundwater abstraction facilities for irrigation and the establishment of irrigation communities. It supervises the Irrigation Management Institute, created under the 2019 Farming Irrigation Act, which promotes sustainable water management practices, designates irrigation zones, and prepares irrigation development plans (EM & KTM, 2025[2]). Initially, its responsibilities were assigned to the National Land Centre, but after the Centre was abolished in May 2024, these duties were transferred to the Ministry of Agriculture’s Parliamentary State Secretariat.
The State Secretariat for Agriculture and Rural Development is the main authority for agricultural policy, overseeing the Rural Development Programme, which aligns with Hungary’s Common Agricultural Policy (CAP) Strategic Plan. The State Secretariat for Nature Conservation is responsible for the governance of protected areas and the preservation of national natural resources and biodiversity. It oversees the National Biodiversity Strategy 2030 and the National Landscape Strategy 2017–2026 and supervises ten Regional Park Directorates. These have operational mandates for habitat conservation and ecological research across the country, with relevance for freshwater ecosystems and landscape protection (Hungarian National Parks, 2025[9]).
The State Secretariat for Forests and Land Affairs works in co-ordination with the National Food Chain Safety Office (Nemzeti Élelmiszerlánc-biztonsági Hivatal, NEBIH) responsible for soil and forest management through its ten Regional Forestry Directorates. These directorates also work with other bodies such as Territorial Water Management Directorates and Regional Park Directorates, which manage state-owned forest lands. The NEBIH’s Soil Protection Authority monitors soil quality, enforces soil conservation regulations, and supports sustainable land use and erosion control, as well as water retention efforts specified in its Soil Conservation Action Plan (2021-2027). Both the Hungarian Chamber of Agriculture (NAK) and the Soil Protection Authority contribute to the work of Water Management Councils.
Other ministries with water-related functions
Hungary’s institutional landscape for water management involves several other ministries with key water-related responsibilities according to Government Decree 182/2022. (V. 24.) on the duties and powers of the members of the Government:
The Ministry of Foreign Affairs and Trade’s (Külgazdasági és Külügyminisztérium, KKM) acts as the national co-ordinator of the EU Strategy for the Danube Region, including in the area of “Protection and preservation of water quality”. The KKM also co-ordinates Hungary’s international water diplomacy efforts, supporting global co-operation and showcasing national expertise. For instance, the Ministry supported the 2019 Budapest Water Summit, which brought together representatives from 118 countries who adopted the “Budapest Appeal” for better water management and supported the development of a Handbook on Water Allocation in a Transboundary Context in 2021.
The Ministry of Construction and Transport (Építési és Közlekedési Minisztérium, ÉKM) is responsible for co-ordinating the planning and implementation of waterworks and water infrastructure projects financed through the central budget. It ensures that such investments are aligned with national priorities and technical standards for sustainable water management.
The Ministry of Finance (Pénzügyminisztérium, PM) oversees the preparation, execution, and monitoring of Hungary’s central budget, ensuring consistency with fiscal discipline and national economic stability goals. The 2025 central budget allocated a domestic operating budget for water-related expenditures to the EM and the ÉKM. In the water sector, the PM is primarily involved in financing water-related investments, development programmes, and setting subsidies and tariffs for water utilities, especially for non-residential users, in co-ordination with the EM and OVF.
The Ministry of Defence (Honvédelmi Minisztérium, HM) plays an essential role in Hungary’s disaster management system. Through the Hungarian Defence Forces, it supports civil protection efforts by mobilising personnel, equipment, and logistical resources during disasters and emergencies. Responsibilities include the protection and reinforcement of dikes and embankments and the co-ordination of post-disaster recovery operations.
Inter-Ministerial Committee on Water Management
An Inter-Ministerial Committee on Water Management was established in late 2024 to promote the integration of water management with sustainable agriculture, regional and urban development, and environmental and landscape protection. Its responsibilities include aligning long-term water management strategies with other sectoral objectives, improving information sharing across relevant government entities and stakeholders, raising awareness of sustainable water management practices among farmers and local communities, and suggesting regulatory changes and action plans to improve water governance (Government of Hungary, 2024[10]). The Committee's first meeting in January 2025 re-emphasised Hungary’s strategic focus on water retention through the development and improvement of water retention infrastructure (e.g. canals, estuaries and reservoirs) and the water retention capacity of soil (Box 2.2). The Committee’s work plan, adopted in March 2025, foresees the revision of the National Water Strategy, which is currently underway, and the development of a new Water Management Act starting in 2026.
The Committee is chaired by the State Secretary for Water Management of the EM and co-chaired by a State Secretary delegate of the AM. The permanent members of the Committee with voting rights are the Director-General of the OVF, the State Secretary and Deputy State Secretary for Water Management of the EM, the State Secretary delegated by the Minister of Public Administration and Regional Development, the State Secretary for Nature Conservation of the AM, a Chairperson of the Parliament’s Agriculture Committee, the President of the Association of Hungarian Farmers' Circles and Farmers' Co-operatives, and the President of the National Chamber of Agriculture. Three permanent members have consultation rights: one delegate from the EM appointed by the Chair of the Committee; one delegate appointed by the Director-General of the OVF; and one delegate of the National Water Management Council. Additional members can be invited by the Chair on an ad hoc basis.
In response to increasing hydro-meteorological variability and severe droughts, the government of Hungary has placed growing emphasis on water retention as a strategy for climate adaptation through the “Water in the Landscape” (Vizet a tájba!) approach. Retaining water is recognised as a multifunctional measure to reduce flood peaks, mitigate drought risks, replenish ecosystem water balances, and secure water availability for irrigated agriculture. The National Water Strategy 2017-2030 includes long-term goals such as improving water retention through nature-based solutions and advocates for a paradigm shift towards enhanced water retention, stormwater management, and water reuse. Natural water retention measures have been developed at the subnational level, notably through the EU-funded projects. For instance, since 2017, the municipality of Püspökszilágy has implemented natural water retention measures to mitigate flash flooding, stabilise groundwater levels, improve biodiversity, and reduce water scarcity risks.
In 2022, the OVF in co-operation with the NAK and the Hungarian Association of Farmers’ Circles and Cooperatives launched an initiative to retain winter precipitation in the canal system. By early 2023, over 50 million m3 of water had been stored. A survey conducted in 2024 by the Institute of Agricultural Economics, the OVF, the NAK’s rural advisory network and academic partners found that 80% of farmers considered water retention on arable land important, with half indicating willingness to change land use (e.g. to wetlands or grasslands) given sufficient financial and technical support.
In 2025, the government launched the “Water in the Landscape” programme to promote sustainable water management and mitigate the negative effects of climate change nationwide. The prorgramme aims to support water retention by identifying suitable agricultural parcels for controlled inundation, offering free water drainage services when needed for public interest, and providing a framework for voluntary landowner participation in seasonal retention measures. Within this framework, the AM and EM launched a multiannual infrastructure renewal programme in 2025 defined in collaboration with the OVF and agricultural representatives. The first phase includes the extension of 300 km of canal capacity and the construction and modernisation of 133 waterworks, seven pumping stations and seven guard stations. These improvements alone are expected to increase water storage capacity for agriculture by 5 million m3. The government has also started a water programme to address recurrent rainfall deficits in the Homokhátság region, which is particularly affected by droughts. The programme approves a series of water replenishment and ecological restoration projects financed exclusively through EU funds as part of the Hungary’s Environment and Energy Efficiency Operational Programme Plus.
Source: NAK (2022[11]), NAK (2023[12]), NAK (2024[13]), OVF (2024[14]), Origo (2025[15]), Urbact (2020[16]), Government of Hungary (2025[17])
Drought Protection Task Force
In response to severe rainfall shortages, Hungary established a Drought Protection Task Force in May 2025, with the mandate to prepare and co-ordinate government measures for mitigating drought impacts and monitoring their implementation. For 2025, the Task Force was operational from 8 May to 17 November. The Task Force sets its own rules of procedure. Chaired by the State Secretary for Agriculture, the Task Force includes senior representatives from the EM, the KTM and the ÉKM, as well as the OVF, the Prime Minister’s chief advisor on national security, and the Chair of the Parliamentary Agriculture Committee. The administrative state secretary of the Prime Minister's Office and the government commissioner responsible for co-ordinating public consultations and operating the National Investment Monitoring System attend meetings as permanent invitees.
Based on a proposal made by the Task Force, the government mandated HUF 4.7 billion (Hungarian forints) (EUR 12.2 million) of “immediate interventions” to ensure technical conditions for increased water resources through retention measures (i.e. maximum use of the storage capacity of canals, reservoirs and backwaters) through Government Resolution 1178/2025. (V. 29.). Because the prevention and management of water shortage was considered of “paramount national interest”, construction investments related to interventions were exempt from applying the Act on the Procedure for State Construction Investments. This typically involves bypassing normal approval processes and procurement rules and allowing direct contracting and simplified administrative steps to accelerate implementation.
National Water Management Council
The National Water Management Council (Országos Vízgazdálkodási Tanácsot, OVT) serves as a central advisory and consultative body for national water policy. The OVT reviews and advises on key water policy documents such as the RBMPs prepared by the OVF, ensuring coherence and stakeholder participation. It also maintains consistency between national-level water policy objectives and subnational planning and implementation activities carried out by subnational Water Management Councils and Territorial Water Management Directorates. In addition to the EM, the OVF, and Sub-catchment Water Management Councils, it brings together national representatives of sectors with a stake in water such as agriculture, energy, environment, fishery, regional development, transport, and health, as well as civil society, businesses, professional associations and scientific organisations.
Independent national bodies related to water
The Hungarian Energy and Public Utility Regulatory Authority (Magyar Energetikai és Közmű-szabályozási Hivatal, MEKH) is the independent regulator for electricity, natural gas, district heating, and water supply and sanitation. The MEKH is responsible for licensing operators, supervising compliance with sectoral legislation and service quality obligations, collecting and publishing official statistics, and protecting consumers. It prepares the regulatory framework for fees and tariffs for public utility services and conducts cost-based reviews to prepare tariff proposals, including affordability considerations, with formal adoption made under government procedures. The MEKH can issue decrees and recommend legislative changes if it identifies shortcomings in existing regulations. As such, the MEKH can suggest amendments to primary legislation (e.g. acts governing water services) through the EM, which can submit draft bills to the Parliament based on MEKH recommendations. It has an independent budget funded through supervisory fees, administrative service fees, and its own operating revenues, including from fines.
The Office of the Commissioner for Fundamental Rights of Hungary (OCFR) is the Hungarian National Human Rights Institution (OHCHR, 2023[18]). It focuses on the right to a healthy environment, to physical and mental health, and to the “common heritage of the nation”, particularly water and biodiversity. Hungary’s Ombudsman for Future Generations, one of two deputies to the OCFR, addresses a range of environmental issues, including the protection of water resources. In 2017, the Ombudsman raised concerns about a proposed amendment to the 1995 Water Management Act that would have removed permitting and notification requirements for wells up to 80 metres deep, pointing to risks of over-abstraction and contamination of groundwater. Following stakeholder consultations, the OCFR issued a General Opinion and an amicus brief to the Constitutional Court, which annulled the amendment. The Ombudsman also monitors irrigation policy, emphasising the importance of regulatory approvals as safeguards for sustainable groundwater management.
Subnational level
Territorial Water Management Directorates
Hungary has 12 Territorial Water Management Directorates (VIZIGs) responsible for protection against damage caused by floods, droughts, inland excess water and inadequate water quality, and the monitoring and evaluation of the qualitative and quantitative status of waterbodies. Their functional territories follow sub-basins and do not align with the administrative boundaries of counties (Figure 2.3).
Note: Lines depict county borders, while colours indicate the territories of Territorial Water Management Directorates (VIZIGs).
Source: Based on Western Transdanubian Water Management Directorate (2025[19]) and Lechner Knowledge Centre (n.d.[20])
VIZIGs manage state-owned assets such as protection systems against flood and inland excess water, drainage networks and irrigation infrastructure. They also manage and enhance the hydrographic monitoring system and assess the qualitative and quantitative status of waterbodies in their jurisdictions. In addition, they perform water remediation (i.e. removing pollutants and contaminants from water) and drought management tasks, including drought monitoring and managing water facilities such as canals and pumps to store and transfer water. VIZIGs support municipalities in their responsibility to ensure the provision of water supply and sanitation services, as well as the implementation of national programmes aiming to improve water supply and sanitation services. Prior to the creation of VIZIGs, water users’ associations played a significant role in water infrastructure management, but their numbers and level of activity have declined over the past three decades (Figure 2.3).
Water users’ associations (vízitársulatok) or water boards have a long tradition in Hungary, originating more than two centuries ago to support agricultural producers, landowners and land users in addressing local water management challenges at the catchment level. Historically, these associations undertook a range of regional water management functions, including river regulation, flood protection and water supply. They played a central role in the management of Hungary’s canal network, estimated at around 100 000 km, as well as associated pumping and irrigation infrastructure.
Following a period of decline after the Second World War, water boards re-emerged as key water management actors between the 1960s and 1990s, working in close connection with large state and co-operative agricultural enterprises. During this period, their main functions included land drainage, irrigation and land reclamation. Through a series of mergers, the number of water boards stabilised at around 67 by the 1990s. The privatisation of agriculture from 1992 led to the fragmentation of land ownership and adjustments to the governance and financing of water boards.
Since the 1995 Water Management Act, many operational responsibilities of water boards have been transferred to VIZIGs, and direct government support has progressively declined. Although the number and activity level of water boards have declined, they continue to operate in several parts of the country under the framework of the 2009 Act on Water Users’ Associations, with varying degrees of organisational capacity and local engagement.
County and District Government Offices
The 2011 Local Government Act and the 2012 Constitutional Reform established new central government offices. These include 19 County Government Offices (CGOs), a Capital Government Office in Budapest and 197 District Government Offices (DGO). These offices exercise legal supervision over county and municipal governments and aim to co-ordinate and promote the territorial implementation of national government tasks and decisions (Government of Hungary, 2025[22]).
CGOs and DGOs act as environmental protection authorities responsible for environmental impact assessments, permitting, inspection and enforcement of environmental regulations. Impact assessments and permitting are required for the establishment of irrigation facilities, wastewater treatment plans, intensive farming, mining, and groundwater abstraction, among others. CGOs also give their opinion on county territorial development programmes adopted by county assemblies following the National Development and Territorial Development Concept (OECD, 2024[23]).
Since October 20241, CGOs also act as water authorities with permitting and licensing responsibilities for water abstraction, use and discharge at sub-basin level. CGOs work closely with VIZIGs, and their jurisdictions align with the 12 functional zones of the VIZIGs. As a result, only 12 out of the 19 CGOs act as water authorities. Between 2014 and 2024, the OKF and its 12 Territorial Disaster Management Directorates had served as water authorities, taking over from the independent Environmental, Nature Conservation and Water Chief Inspectorate (OECD, 2018[24]). The OKF and the Territorial Disaster Management Directorates remain responsible for emergency response and civil protection.
Territorial and sub-catchment Water Management Councils
Water Management Councils at the sub-catchment and sub-basin levels serve as consultative and advisory platforms for water management in Hungary (OVF, 2023[25]). Hungary’s four sub-catchments span over several sub-basins (Figure 2.4), which correspond exactly to the functional areas of the 12 VIZIGs (Figure 2.3). The four Sub-catchment Water Management Councils (Részvízgyűjtő Vízgazdálkodási Tanács, RVT) and the 12 Territorial Water Management Councils (Területi Vízgazdálkodási Tanács, TVT) engage several stakeholders, including national, county and municipal governments, local communities, NGOs, and scientific organisations. Each VIZIG participates as a member and serves as the secretariat for both TVTs and RVTs. Councils include up to 25 members (Table 2.1) and meet at least twice a year to provide input on national and subnational plans, programmes and strategies. RVTs facilitate communication between TVTs and the national council and are consulted during the preparation of RBMPs at sub-catchment level. TVTs facilitate co-ordinated water management planning and the uniform execution of the water-related tasks of subnational governments and professionals at the sub-basin level. They also evaluate and provide recommendations on plans and programmes related to water resources management, drinking water supply and wastewater management, territorial water investments and water damage control, and define priorities for transboundary water co-operation in their respective areas if applicable.
Note: Highlighted municipalities are the headquarters of the 12 VIZIGs.
Source: (OVF, 2009[26])
Source: Decree 1587 of 2018 (XI. 22.) on Water Management Councils
Counties and municipalities
County governments are responsible for land-use planning and regional and rural development. They are led by councils composed of representatives (councillors) directly elected through a secret ballot for four years (OECD and UCLG, 2025[27]). County governments support CGOs in their environmental protection authority and water authority functions and collaborate with TVTs and RVTs.
Municipalities are responsible for local environmental protection tasks, housing and land use planning, among others. As part of their environmental protection tasks, they ensure the local implementation of national legislation, develop programmes, issue municipal decrees, assess the state of the environment, and co-operate with other municipalities to develop county-level programmes.
Municipalities are also responsible for ensuring the provision of water supply and sanitation services to their residents (Box 2.4). This includes developing and maintaining water supply and sanitation infrastructure, authorising water supply and sanitation providers to operate infrastructure, and monitoring the activities of service providers. In contrast to state-owned water utilities, where the national government holds an average ownership share of 94.4% and serves an average of 668 000 customers, most municipally-owned utilities are characterised have smaller ownership shares and serve an average of 228 000 customers (State Audit Office, 2022[28]). The functional area for these service providers does not align with the administrative boundaries of counties or sub-basins or sub-catchments. The Hungarian Water Utility Association represents the interests of operators, provides professional support to members and fosters co-operation between operators, trading and service companies within the water sector, local authorities, and social organisations (Hungarian Water Utility Association, 2025[29]).
The regulatory framework for water supply and sanitation services in Hungary has evolved from being part of the broader water management regime to a distinct sector-specific model. These services are governed by the 2011 Act on Water Utilities, which delineates the sector’s institutional structure, ownership regime, licensing framework, and service provision responsibilities.
The Act defines three main legal relationships:
Ownership of water utility assets: Assets can only be owned by municipalities or the national government. While private capital was previously allowed up to a 49% stake in utilities, legislative changes in 2007 prohibited further private investment.
Responsibility for service provision: Municipalities are legally responsible for providing water supply and sanitation services within their administrative boundaries. When multiple municipalities are involved, one municipality is designated to act on behalf of all.
Utility operation: The entity responsible for service provision must select the service operators and oversee infrastructure development.
Operating contracts are usually lease-operation schemes, asset management contracts, or concessions when an operator of last resort is appointed due to the absence of an active operating contract. Each type of contract involves different legal provisions, rights and obligations:
Asset management contract: The operator assumes full ownership responsibilities, including bookkeeping and reporting. The contract allows use of the assets (excluding sale) and enables depreciation to be accounted for – a key distinction from other contract types.
Concession contract: The operator is tasked with reconstruction and value-enhancing renovations during the concession term and is entitled to collect revenues from asset use. Therefore, it is in the operator's interest to make appropriate investments and to maintain at least the book value of utility assets.
Lease-operation scheme: The entity responsible for service provision leases assets to the operator in exchange for a rental fee. The entity responsible for service provision must reinvest the lease proceeds into infrastructure maintenance and upgrades.
Transboundary co-operation
International Commission for the Protection of the Danube River (IPCDR)
The ICPDR is the implementing body of the Danube River Protection Convention, the main legal framework for the transboundary management of the Danube River Basin (ICPDR, 2025[33]). Covering 19 countries and 300 tributaries, the Danube Basin is the most international river basin in the world, and the ICPDR is one of the largest and most active international river basin management commissions. Hungary is one of 15 full contracting parties2 to the ICPDR.
The ICPDR's approach to water management is structured around three key pillars: (i) reducing pollution from settlements, industry, and agriculture to safeguard water quality; (ii) protecting rivers as ecosystems, ensuring their capacity to support aquatic biodiversity and provide essential services such as drinking water, recreation, and ecological balance; and (iii) enhancing flood protection, creating safer living environments and reducing the risk of major flood damage. The ICPDR is the main platform for implementing transboundary aspects of the EU Water Framework Directive and the EU Floods Directive within the Danube River Basin. Both River Basin Management Plans and Flood Risk Management Plans are prepared for the entire river basin based on individual countries’ contributions.
The ICPDR convenes biannual meetings with contracting parties and observer organisations (ICPDR, 2025[34]). Observers represent a broad spectrum of social, cultural, economic and environmental stakeholders and participate in expert, task group meetings and plenary meetings without decision-making rights. Meetings are chaired by the ICPDR President, with the presidency rotating annually among member countries. Substantive technical work is conducted through seven permanent expert groups comprising specialists from relevant ministries, NGOs and academia. They meet two to three times per year and are responsible for preparing reports and recommendations to inform co-ordinated action across the basin. The ICPDR may also establish time- and target-limited task groups to address specific objectives.
Transboundary Water Committees
The OVF and relevant VIZIGs take part in Transboundary Water Committees with Hungary’s seven neighbouring countries (Austria, Croatia, Romania, Serbia, Slovakia, Slovenia, and Ukraine) to co-ordinate the activities of water management authorities at professional and technical levels. These committees are guided by joint regulations and supported by transboundary water secretariats, sub-committees and specialist groups on a regional or catchment basis (OVF, 2023[35]). Some agreements are several decades old, such as the agreements with Austria and Slovakia, which date back to 1956 and in 1976, respectively. Hungary’s five remaining transboundary agreements were signed over the past three decades, including the most recent one with Serbia in 2019, which dissolved the former Hungarian-Serbian Water Management Commission. Key areas of co-operation of Transboundary Water Committees include protection against floods and inland excess water, water use, the collection and exchange of hydrographic data and forecasts, and water quality protection (ICPDR, 2024[36]).
Hungary’s water and climate policy has evolved considerably over the past three decades, shaped by national priorities and EU requirements (Figure 2.5). Foundational legislation on water management and environmental protection adopted in 1995 laid the groundwork for national water governance. Since Hungary's accession to the EU in 2004, water governance has also been shaped by the transposition of EU directives such as the Water Framework Directive (WFD), the Urban Wastewater Treatment Directive (UWWTD), the Drinking Water Directive (DWD) and the Floods Directive. From the 2010s onward, national reforms further defined the roles, responsibilities and functional areas of government entities responsible for water management; regulated water supply and sanitation services; created a legal framework for irrigation; and sought to better manage droughts and protect vulnerable groundwater resources.
Hungary’s National Water Strategy (2017-2030) and Third River Basin Management Plan (2022-2027) provide the overarching framework for sustainable water management and planning, aligning national priorities with EU obligations. In parallel, Hungary’s climate policy has been shaped by its national Climate Law (2020), the First and Second National Climate Change Adaptation Strategies (2013-2017 and 2018-2030), and the National Clean Development Strategy (2020-2050), complemented by action plans, local strategies and operational programmes that underline the importance of water management in the context of climate change. Broader strategies and sectoral policy frameworks, such as the Common Agricultural Policy Strategic Plan (2023- 2027), also play a significant role in shaping water and climate-related policies.
National legislation and transposition of EU directives
The 1995 Water Management Act provides the legal framework for water management and protection in Hungary. It sets out the main rights and responsibilities related to water use and conservation and the prevention of water damage, with the competent ministry, its water management bodies and municipalities responsible for implementation. A 2025 amendment added water conservation and water shortage management to the state’s responsibilities. The Act defines property rights related to watercourses and water-related infrastructure, regulates the activities of water supply and sewerage operators, establishes provisions for water resources management and the prevention of damages caused by water (e.g. floods and waterlogging), and sets rates for water abstraction charges updated through ministerial decrees. The Act defines a priority order for different water uses. Subsistence drinking, public health, and disaster relief receive the highest priority, followed by essential public services, agriculture (animal husbandry and fish production), nature conservation, irrigation, and economic and recreational uses.
The Water Management Act outlines the regulation of water permits. Water users require three cumulative permits for water abstraction: the “water permit in principle”, which outlines the most appropriate technical solutions for the proposed water activity; the “water establishment permit” required for the installation of water facilities; and the “water operating permit”, which authorises the facility to start operations. Additionally, two other types of permits exist: one for decommissioning a water facility, and another for continued operation when the facility was built without the required construction permit or does not comply with its terms. Water abstraction permits are issued by CGOs acting within the scope of water management and protection. In the case of agricultural groundwater abstraction, the national irrigation administration body established under the 2019 Act on Irrigation Farming is competent. The minister responsible for water (currently the Ministry of Energy) acts as the supervisory authority. When issuing water abstraction permits, authorities must ensure that the planned abstractions do not endanger the protection of water resources, in accordance with the 1995 Water Management Act. A permit may only be granted if the quantity of water requested is demonstrably available for existing permit holders, and if the abstraction complies with the water management, technical, and safety requirements set out in water legislation. Water authorities must obtain the asset management consent of the territorially competent VIZIGs, as well as the expert opinions of the specialised authorities involved in the administrative procedures. They must examine the consistency of the permit application with the Water Management Act, as well as with regional water management and flood protection plans. The permit must also incorporate technical, operational, and environmental requirements, such as for example, the installation of metering devices.
The 1995 Act on Environmental Protection establishes environmental protection principles, emphasising the reduction of environmental degradation and contamination, the protection of human health, the improvement of quality of life, and the conservation and sustainable management of natural resources, including water. Together with the 2003 Act on Environmental Pollution Charges, it regulates the pollutants released into water that are not covered by the Water Management Act, such as industrial and municipal discharges, and defines environmental load charges on the discharge of these pollutants.
Hungary’s 2020 Act on Climate Protection reinforces the legal foundation for climate mitigation and adaptation. The Act enshrines the polluter-pays principle, promotes “proportionate and realistic” interventions in climate policy design and implementation, and requires public policies and regulations across sectors to align with sustainability principles. It commits Hungry to reaching climate neutrality by 2050 and reducing its GHG emissions by 40% by 2030 compared with 1990 levels. In June 2025, Hungary’s Constitutional Court ruled that the latter target was unconstitutional as it was insufficiently high to guarantee constitutional principles of intergenerational justice, the right to physical and mental health, and the right to a healthy environment enshrined (Constitutional Court, 2025[37]). The Court ordered the Parliament to revise the target and to adopt comprehensive measures tailored to the needs of Hungary and the Carpathian Basin in terms of climate mitigation and adaptation by 30 June 2026.
Hungary has transposed EU directives related to water into national legislation (Table 2.2). The Water Framework Directive (2000/60/EC) (WFD) is the main framework for the integrated management and protection of waterbodies in the EU, aiming to achieve and maintain their good ecological and quantitative status. One of the main tools for achieving WFD objectives are RBMPs. Furthermore, spatial planning regulations in Hungary co-ordinate land and water use management across administrative and hydrological boundaries.
Subsequent legislative developments on water in Hungary have sought to:
Define the concept of ecological water replenishment [Decree 147/2010 (IV. 29.)] as the release of surplus surface or available water into floodplains or low-lying areas for water retention or environmental purposes to ensure sustainable water resources management.
Regulate water supply and sanitation services (2011 Act on Water Utilities), defining the rights and responsibilities of the roles and responsibilities of the regulator (MEKH), service providers, the national government and municipalities, and setting out the licensing process and tariff-setting rules.
Define the roles, responsibilities and functional areas of government entities responsible for water management and water protection, namely the OVF, VIZIGs and Water Authorities [Decree 223/2014 (IX.4.)].
Create a legal framework for irrigation (2019 Act on Farming Irrigation Act), facilitating irrigation investments to adapt agriculture to the challenges of reduced rainfall, and Irrigation Development Plans to define suitable areas, technologies, and conditions for irrigation.
Better manage droughts [Decree 35/2021 (X. 14.)] by integrating drought management into existing frameworks for protection from water risks and surface water monitoring. Using hydrological forecasts and the Hungarian Drought Index, the decree allows the creation of “drought zones” and graded readiness levels to be declared and empowers water authorities to apply retention, transfer and demand-protection measures rather than nationwide declarations. The decree mandates VIZIGs to develop Drought Management Plans at the sub-basin and district levels and assign responsibilities for measures including water retention, distribution, reduction of water losses, and safeguarding water supply for households, ecosystems, and agriculture.
Create “special water resource management areas” where specific rules and monitoring requirements apply to ensure the sustainable use of vulnerable groundwater bodies [Decree 221/2025 (VII. 24.)].
Water-related programmes, strategies and plans
National Water Strategy (2017-2030)
The National Water Strategy (Nemzeti Vízstratégia - Kvassay Jenő Terv, KJT) 2017-2030 defines Hungary’s strategic direction for water management and supports the implementation of the WFD. It identifies seven strategic objectives, 26 interconnected goals and a range of tools and measures assigned to these goals (Figure 2.6). Tasks and measures are set out for implementation in the medium term (2017–2020). As of December 2025, the review of the strategy was underway, starting with the Water Science Council identifying the chapters of the strategy requiring revision. Once completed, the review will be made available for comments on the appropriate platform.
Source: Based on OVF (2015[38])
Third River Basin Management Plan (2022-2027)
As required under the WFD, Hungary prepares one national RBMP and four sub-catchment RBMPs for the Danube, Tisza, Drava, and Balaton per EU planning period. These plans are informed by 42 sub-catchment RBMPs that are regulated by the same decree but not published. The EM oversees the development and approval of RBMPs, while the OVF is responsible for the development of the national RBMP and co-ordinates with the 12 VIZIGs to assess water quality and quantity in their respective functional areas (OVF, 2025[39]). The development of RBMPs at sub-catchment level is the responsibility of appointed VIZIGs3. The Danube River as a whole has its own international RBMP (Box 2.5). Hungary’s national RBMP aims to: (i) prevent the deterioration of aquatic and wetland habitats, protect them and improve their conditions; (ii) promote sustainable water use through the long-term protection of available water resources; (iii) improve water quality by reducing pollutant emissions; (iv) phase out hazardous substances; (v) gradually reduce groundwater pollution and prevent further contamination; and (vi) mitigate the adverse effects of floods and droughts (OVF, 2022[40]).
The Danube River Basin Management Plan (DRBMP) is a strategic document prepared by the International Commission for the Protection of the Danube River (ICPDR) in accordance with the WFD. The first DRBMP (2009-2015) provided a comprehensive basin-wide pressure and impact analysis, identified significant water management issues and defined environmental objectives. The second DRMP (2016-2021) enhanced the integration of national water management plans, provided a stronger emphasis on integrating climate change adaptation, and strengthened co-ordination with the EU Strategy for the Danube region (EUSDR) and the first Danube Flood Risk Management Plan (DFRMP). The third DRBMP (2022-2027) integrates climate resilience, nature-based solutions, and the circular economy more prominently, while ensuring synergies with the second DFRMP (2021). The DFRMP guides joint flood risk strategies across Danube riparian states, including through co-ordinated measures to reduce flood risks, enhance preparedness and response, and improve transboundary co-operation in line with the EU Floods Directive.
The EUSDR was established by a proposal from the European Commission and endorsed by the EU Council of Ministers in 2011 to protect the environment, build prosperity, and strengthen co-operation in the Danube region. The EUSDR established several priority areas including water quality, environmental risk management and biodiversity. Hungary co-ordinates the former two priority areas in co-operation with Slovakia and Romania, respectively. Hungary is the lead partner for restoring and maintaining the quality of waters and managing environmental risks. The EUSDR seeks to contribute to the implementation of EU water legislation, especially the WFD, Environmental Quality Standards Directive, Groundwater Directive, Drinking Water Directive and Urban Wastewater Treatment Directive.
These goals are supported by a programme of 119 operational measures scheduled for 2021-2027. Given most of the measures planned in the second RBMP were not implemented, they were reintroduced in the third RBMP (European Commission, 2025[44]). RBMP3 introduces new measures related to green and blue infrastructure (e.g. stormwater drainage systems) and the improvement of water flow conditions, among others. It encourages the use of alternative water resources in agriculture, such as treated wastewater; efficient water use in households; the revision of regulations on environmental pollution charges, water abstraction charges and water tariffs; and the development of monitoring systems and knowledge flows. RBMP3 was informed by the Second National Climate Change Strategy (Box 2.6) and includes a dedicated operational measure on climate adaptation, comprising 97 related actions (e.g. water retention in agricultural areas).
The investment envelope for these measures is estimated at EUR 5.2 billion, with 70% allocated to agriculture (Table 2.3). These include soil improvement and protection interventions, the modernisation of livestock farms based on the Nitrates Directive, and applying water-saving and green energy solutions to crop production. RBMP3 investments are funded by the central budget and EU funds4 including the Recovery and Resilience Facility, the Cohesion Fund, and the European Agricultural Fund for Rural Development. Approximately EUR 6 million are foreseen to support non-structural measures such as the preparation of legislative and economic regulatory proposals and the development of RBMP guidelines, expected to be covered by the central government.
Note: Values are calculated at the EUR/HUF rate of HUF 350 applicable at the time of the preparation of RBMP3. Values for the thematic area of Agriculture, funded by the Common Agricultural Policy Fund, are calculated at the EUR/HUF rate of HUF 365.
Source: (OVF, 2022[40])
The Second National Climate Change Strategy (NCCS-2) provides Hungary’s overarching adaptation framework for 2018–2030. Building on the first strategy, which outlined water-related measures such as improved monitoring, infrastructure upgrades, and water-saving practices, the NCCS-2 integrates adaptation more systematically into national and subnational policy. It includes a decarbonisation roadmap, an adaptation strategy, and an action plan promoting climate awareness. Implementation is structured through national climate change action plans, initially intended to follow a three-year cycle. While the first action plan covered 2018-2020, no subsequent plans have been released, despite the legal requirement to update them every three years. The NCCS-2 recognises the KJT and the RBMP as the main water planning instruments in Hungary and underlines the importance of integrating climate adaptation challenges into these plans. As part of NCCS-2, the National Adaptation Strategy (NAS) provides an adaptation toolkit, which defines priority actions for sectors such as water management, energy, the built environment, urban planning and tourism, based on territorial vulnerability assessments. This toolkit assesses the resilience of water infrastructure to flooding and examines challenges related to water scarcity, including potential impacts on agriculture, forestry and natural habitats.
In alignment with NCCS-2, local authorities can develop voluntary Local Climate Strategies around specific areas such as urban heat mitigation, sustainable energy use, disaster risk management, and public awareness and education on climate change. All 19 counties and 132 municipalities developed such strategies with financial support from the Energy Efficiency and Environment Operational Programme and methodological support from handbooks developed by the National Adaptation Centre.
The National Clean Development Strategy 2020-2050 outlines a 30-year socio-economic and technological development path aimed at achieving climate neutrality by 2050. It covers sector-specific analysis for energy, industry, agriculture, land use and waste management, including wastewater. Regarding water scarcity, the strategy highlights the importance of retaining precipitation across farms, households, and municipalities, while greater integration between flood protection and spatial planning would help mitigate floods.
National Integrated Water Resources Management Plan (2023-2027)
The National Integrated Water Resources Management Plan (Integrált Vízkészlet-gazdálkodási Országos Terv, IVOT) provides a short-term (2023-2027) technical framework for water resources management aligned with the National Water Strategy. The IVOT functions primarily as a decision-support and technical background tool for prioritising interventions (e.g. water retention, water recharge, drought resilience measures) but it is not legally binding nor subject to reporting. Instead, IVOT measures are often implemented within the RBMP or other plans and their progress monitored within these frameworks.
The IVOT includes a water resources balance model and identifies priority measures for climate resilience for an estimated budget of EUR 800 million. Structural measures include blue, green and grey infrastructure investments involving new facilities and the expansion or improvement of existing infrastructure. Non-structural measures include regulatory interventions (e.g. legislative amendment for surface water management), strategy and programme development (e.g. socio-economic assessment for water resources management), definition of water use regimes (e.g. register of water demand and water use), international agreements (e.g. preparation of international water policy guidelines) and R&D activities (e.g. determination of ecological water demand).
Flood Risk Management Plan
Hungary’s Flood Risk Management Plan (FRMP), prepared under the EU Floods Directive, sets out the country’s strategy for reducing flood risks across major river basins during the 2022-2027 programming cycle. This 2nd FRMP sets objectives to reduce flood-related damage to people, property, and ecosystems while strengthening climate resilience. It includes hazard and risk maps for significant flood-prone areas, a prioritisation of structural measures such as levee reinforcement and emergency reservoirs, and non-structural actions such as improved forecasting, data exchange, and public awareness. The plan promotes integrated water management by linking with the RBMP. The OVF and VIZIGs lead implementation with the support of the ICPDR, transboundary water committees and EU funding. As of December 2025, the review of Hungary’s 1st FRMP was underway.
Integrated Municipal Water Management Plans
Integrated Municipal Water Management Plans (Integrált Települési Vízgazdálkodási Terv, ITVT) are voluntary planning documents that support municipalities in aligning water management with environmental, social, and economic objectives. They compile relevant information on water management in the municipality as a basis for decision-making, outlining the tasks and principles of sustainable water management in an operational framework that integrates environmental protection and infrastructure development. The development of such plans is identified as a priority under objective 4 of the National Water Strategy, which aims to ensure high-quality water utility services and effective rainwater management with fair consumer cost-sharing. Strengthening their methodology and integrating them with urban planning is seen as essential for achieving this objective (OVF, 2023[49]). In 2021, methodological guidance for preparing ITVTs was developed, and the OVF produced pilot plans for three different types of municipalities in Magyaregregy, Lakitelek and Boldva.
Other plans, programmes and strategies
Other plans, programmes, and strategies address specific water-related challenges while supporting the overarching objectives of the WFD, KJT and RBMP (Table 2.4). Several of these initiatives aim to ensure compliance with other EU directives, including the Urban Wastewater Treatment Directive, the Drinking Water Directive, and the Floods Directive. Others serve national planning needs in response to climate change and infrastructure renewal, such as the Drought Management Plans and the National Water Utilities and Public Services Strategy.
Other sectoral strategies related to climate adaptation, environmental protection and nature conservation are largely aligned with and in some cases dependent on the National Water Strategy and the RBMP (OVF, 2022[40]). Hungary’s RBMP3 identifies several national sectoral policies that relate to water in areas including energy, industry, transport infrastructure, tourism, forestry and agriculture. For instance, compliance with the WFD is a key component of Hungary’s Recovery and Resilience Plan, which emphasises the role of digitalisation and the circular economy in promoting sustainable water management. However, not all sectoral strategies consider WFD and KJT objectives and systematically assess their potential impact on water resources.
Hungary uses a wide range of economic instruments, financial mechanisms and data systems to manage water. The country has a three-pronged pricing policy for water use, including a water abstraction charge, agricultural water service fees, and tariffs for residential and non-residential consumers. These instruments seek to contribute to cost recovery, support infrastructure development, and encourage sustainable water use. Hungary’s water-related expenditure remains below the EU27 average and is highly dependent on revenues from water tariffs and EU funding. Public investments are supported by the central budget and EU funding, with significant allocations for major infrastructure projects, flood protection, and wastewater systems. Additional financing mechanisms include the Agricultural Risk Management System, the Water Utility Development and Compensation Fund, and compensation schemes for temporary and voluntary inundation of agricultural land. Hungary has also established several national and transboundary information systems to support water management and climate adaptation planning.
Economic instruments
Water charges and tariffs
The water abstraction charge aims to fund water resources management (e.g. monitoring, hydrography and administration) and encourage sustainable water use and conservation. The charge is paid by surface and groundwater users (e.g. industrial, agricultural) through a water rights permit and collected by relevant water authorities. It consists of a basic fixed charge and a variable charge that depends on the amount of water abstracted, the source (i.e. groundwater or surface), type (karstic, porous or thermal), status (quantitative and qualitative), and economic use of the water abstracted. The fixed charge doubled from 4.5 HUF/m3 to HUF 9/m³, and to HUF 18/m³ (EUR 0.01, EUR 0.02 and EUR 0.05 respectively) for usage exceeding permitted volumes by more than 10% following a 2024 reform aiming to strengthen water resource protection (Green Support, 2025[50]).
Energy generation and water utilities account for 75% of revenues from the water abstraction charge, as agricultural water users benefit from exemptions. Irrigation water use is exempt under 400 000 m³ per year per licence, 4 000 m³/ha per year for individual users, and 25 000 m³/ha per year for rice production using surface water. In practice, few irrigators are subject to the charge, as the national average irrigation use is 1 448 m³/ha per year. Additionally, since 2016, the Minister responsible for water management can declare periods of permanent water scarcity and exempt farmers from paying water abstraction charges and, since 2023, agricultural water service charges. Since 2017, a period of permanent water scarcity has been declared for several months in most years. In 2022, revenue from water abstraction charges amounted to HUF 1.6 million (EUR 4 150) (State Audit Office, 2024[51]).
The agricultural water service charge aims to cover the maintenance and operation costs of the agricultural water service. It is a two-factor charge consisting of a basic and a variable fee proportional to the volume of water used. Fees depend on the method of water supply (gravity or pumped abstraction), the technical condition of the water infrastructure and the number of water users within the irrigation cluster. Before 2020, the charge was differentiated for irrigation, rice production and fish farming; since then, the methodology has become uniform across all three activities. In 2023, the average basic and variable fees for the agricultural water service charges were HUF 34/m³ and HUF 13/m³ respectively (EUR 0.09 and EUR 0.03 respectively). However, basic fees varied by a factor of over 700 (from HUF 1/m³ to HUF 712/m³) and variable fees by a factor of 114 (from HUF 1/m³ to HUF 114/m³) across different service operators (State Audit Office, 2025[52]). Currently, 11 of the 12 VIZIGs provide agricultural water services, divided into 75 agricultural water supply systems and 129 water supply units5. Each year, VIZIGs aggregate agricultural water users’ demand declarations and determine basic and variable fees per water supply unit based on water volumes reserved in the water rights permits and water volumes ordered (OVF, 2023[52]).
Residential and non-residential users of the public water supply pay water and wastewater tariffs to water utilities. Tariffs seek to encourage the maintenance of safe water services, cost- and capacity-efficient operations, the improvement of service quality and the protection of natural resources. Tariffs consist of a basic fee and a consumption-based fee, both of which vary significantly across Hungary’s 34 water utilities (State Audit Office, 2024[53]). Between 2017 and 2022, there was significantly more variation between non-residential water tariffs than between residential ones, with a seven-fold difference between the minimum and maximum charges for residential consumers, and a 49-fold difference for non-residential consumers. However, Decree 25/2023. (XII. 13.) EM on the determination of water utility service fees for non-residential users has standardised consumption-based water tariffs for industrial players from 2024. Overall, water and wastewater tariffs in Hungary are the second and third lowest respectively among OECD Europe countries (Figure 2.7).
Note: Tariff for water and wastewater services in 2023 or latest available year.
Source: (IBNET, 2025[54])
Hungary has a long-standing policy of capping household utility prices, including water, through the Utility Cost Reduction (rezsicsökkentés) scheme, which lowers the financial burden of basic services for all households. Residential and non-residential tariffs were frozen at their January 2013 rates until 2023, when non-residential tariffs increased through an amendment to the 2011 Water Utility Services Act. Residential tariffs have remained frozen at their 2013 rates. Average cost recovery rates for operations and maintenance fell from 99% in 2009 to 79% in 2018 (OVF, 2022[40]; World Bank, 2015[55]). Hungary invests EUR 14 per capita per year in renewing existing and building new wastewater collection and treatment infrastructure, below the EU average of EUR 49 per year (Water Europa, 2025[56]).
Environmental load charges
Environmental load charges apply to activities that release pollutants into the air, soil and water. They are calculated based on pollutant quantities and adjusted by type and location-specific factors. The water load charge covers pollutant discharges into surface waters and is based on the type and quantity of pollutants, with multipliers reflecting ecological sensitivity and sludge handling practices. Water load charges are paid to the national tax authority, while soil load charges are paid to local governments. Load charges in Hungary were last adjusted in 2005, with incremental increases until 2009. Since then, rates have been frozen, reducing their real value (OVF, 2022[40]).
Funding instruments
Funding for water management in Hungary mostly comes from water tariffs and EU funds. Water and wastewater tariffs account for 50% of water management funding, while EU funding represents 40% (Figure 2.8) (European Commission, 2021[57]). Participation from the public budget (7%) and the private sector (3%) are marginal. Hungary faces an estimated annual investment gap of EUR 600 million to achieve its water objectives under EU legislation (European Commission, 2025[58]). Total water-related investment needs are estimated at EUR 1.3 billion per year, representing more than one-fifth of overall environmental investment needs under EU legislation of EUR 5.8 billion. Current EU and national funding fall short, contributing to a wider environmental investment gap of EUR 2.4 billion annually across the priority areas of pollution prevention and control, circular economy and waste, water protection and management, and biodiversity and ecosystems.
Source: (European Commission, 2021[57])
National funds and funding instruments
Hungary funds water and climate initiatives by allocating dedicated central budget funds to the Ministry of Energy, the Ministry of Construction and Transport, and the National Development Centre. The central budget supports large-scale infrastructure investments in areas such as flood protection and wastewater systems and co-funds EU-backed projects. It also earmarks funding for the Water Utilities Development and Supply Fund, the operations of VIZIGs, water development tasks and natural disaster damage restoration activities. Additionally, the government offers a range of compensatory, solidarity-based, and cost-sharing mechanisms for risk prevention and post-event recovery (Box 2.7).
The Hungarian government operates several funding instruments aimed at mitigating risks and impacts related to water and climate. These include:
Natural Disasters Force Majeure Grant: Under Decree 9/2011 (II.5.), municipalities affected by natural disasters such as floods, droughts, storms, or fires can request force majeure grants to support protection and recovery. The aid can cover up to 90% of recognised costs, ensuring the rapid recovery of affected municipalities. The system is particularly important for the restoration of infrastructure such as roads, drainage systems and public buildings.
Irrigation easement: Under the 2019 Law on Farming Irrigation (Act CXIII/2019), water authorities can grant irrigation easements allowing water rights holders such as irrigation communities or individual farmers to establish and operate water infrastructure on third-party properties when necessary to maintain irrigation activities. These property owners are compensated financially with amount determined by the water authority and paid by the water rights holder. There are two types of compensation: one-off compensation in the case of a property taken out of cultivation of HUF 173/m2, and compensation based on use, which considers damage caused to crop production, grassland management, soil and forestry.
Water Utility Development and Compensation Fund: Established under Decree 24/2023 (XII. 13.), this fund supports water utility development and maintenance by pooling quarterly contributions from the service providers that generate a profit (currently six) and the central budget to support operators whose revenues are insufficient to cover their costs. It is based on the principle of solidarity and the requirement that the sector remain non-profit. The decree and its annexes, which are updated regularly based on the data collected by the MEKH and submitted by the Ministry of Energy, defines an amount that each utility must earmark for infrastructure maintenance. Earmarked amounts, linked to operational, personnel and maintenance costs, determine compensation eligibility.
Voluntary Inundation Compensation Scheme: The “Water in the Landscape” programme launched in 2025 introduces a compensation mechanism for private landowners who voluntarily allow the temporary inundation of pastures and grasslands for water retention purposes. It has also set up a dedicated online portal for farmers to voluntarily offer their land for temporary inundation.
Agricultural Risk Management System (ARMS): Established under the 2012 Agricultural Risk Management Act, the system supports municipalities and farmers affected by natural disasters such as floods, droughts or storms. It includes a compulsory Damage Mitigation Fund for farms over 5 or 10 hectares, which is activated when losses exceed 15% overall or 30% for a single crop, with the state covering 50% of relief costs. A voluntary crop insurance scheme also exists, subsidised up to 65% by the government. In 2021, over 20 000 beneficiaries participated, with premiums totalling nearly EUR 45 million. Since 2025, EU funds have complemented national sources, expanding the envelope to EUR 87.5 million.
EU funds and funding instruments
The EU budget is a key source of environmental and climate funding in Hungary. EU cohesion policy6 provides EUR 7.2 billion for climate action in Hungary for the 2021-2027 period, with a further EUR 22 million from the European Maritime, Fisheries and Aquaculture Fund (European Commission, 2025[58]). The Recovery and Resilience Facility (RFF) contributes EUR 7 billion in climate finance up to 2026 in Hungary, representing two-thirds (67%) of the Recovery and Resilience Plan (RRP). Although environmental investments cannot be regarded as entirely additional to climate investments, EU environmental funding for 2021-2027 is estimated to reach around EUR 7.3 billion for Hungary. Most of this amount (EUR 4.9 billion) comes from cohesion policy, while CAP investments amount to EUR 2 billion.
EU cohesion policy funds and national ones fund the Széchenyi Plan Plus, Hungary’s national socio-economic development framework for 2021-2027. The plan is structured around eight thematic Operational Programmes (OPs) aligned with overarching national priorities. The OPs are co-ordinated by the National Development Centre under the State Secretariat for EU-funded Developments of the KTM and monitored by dedicated committees that include representatives from relevant ministries, subnational governments, NGOs, and other stakeholders. Two of the eight OPs cover water: the Environmental and Energy Efficiency OP (KEHOP Plus) and the Territorial and Settlement Development OP (TOP Plus). The former, with a budget of EUR 4.3 billion, addresses environmental and climate-related challenges, including mitigating the impact of flooding, inland excess water, droughts, and resource overuse (Table 2.5). The latter, with a budget of EUR 5.25 billion, aims to narrow regional disparities and foster balanced economic growth, for instance, by supporting the development of integrated municipal water management plans.
In addition to these earmarked EU funds, Hungary leverages EU programmes open to all Member States to fund innovative water and climate projects. Hungary has implemented several EU-funded projects addressing the interlinkages between water management and climate adaptation, especially through nature-based solutions and natural water retention measures (Box 2.8).
Hungary has implemented several EU-funded projects related to water and climate. These include:
LIFE MICACC project (2017-2021): This project, led by the State Secretariat for Municipal Affairs (BM), aimed to support five Hungarian villages facing distinct water management challenges with the design of an integrated natural water retention system at the local level.
LIFE-CLIMCOOP project (2020-2024): This project supported the municipality of Kazincbarcika and the chemical industrial company BorsodChem to reduce local climate risks and enhance joint climate adaptation by planning and implementing nature-based urban adaptation solutions (e.g. log dams against flash floods and the nature-based recultivation of former industrial sites) based on a regional climate vulnerability assessment. A multi-stage and up-scalable water treatment pilot that could be used for irrigation was also developed, contributing to the sustainable maintenance of urban green spaces.
LIFE LOGOS 4 WATERS project (2021-2025): Led by the State Secretariat for Municipal Affairs (KTM), the project aimed to promote the adoption of good practices in nature-based solutions and sustainable water management at both local and catchment levels. Measures were implemented in two catchment areas, one hilly and one lowland.
LIFE in RUNOFF’s project (2021-2025): This project aims to install blue-green infrastructure to efficiently reduce the impact of stormwater runoff on fragile urban infrastructure in three districts of Budapest.
Horizon 2020 OPTAIN project (2020-2025): This project aims to assess the feasibility of natural water and nutrient retention measures to better adapt to extreme events (e.g. floods, droughts) and to reduce conflicts between agricultural water use and other human and environmental demands for water.
Interreg NBS4Local (2023-2027) and Localience (2023-2026) projects: These projects contribute to building and disseminating a national knowledge base on nature-based solutions, with a particular focus on addressing climate risks (e.g. floods, fires, storms, landslides, droughts, etc.) at the local level and involving communities.
Interreg InnoWATCCH project (2025-2028): Led by the OVF, this project pilots innovative water retention technologies in four transboundary Danube sub-basins to support climate resilience in agriculture and flood protection. The project also supports co-ordinated water management across stakeholders, facilitates access to data, and promotes capacity development.
Interreg ADAPTisa project (2024-2026): The project aims to develop a multi-level water retention and aquifer recharge system and an integrated Water Management Platform to support collaboration between water and disaster managers in the cross-border region of Hungary and Serbia.
Interreg FloodBOTI project (2024-2026): As part of this project, the North Hungarian Water Directorate aims to restore 60 hectares of pasture, plant 20 hectares of ancient and native tree species, fell invasive alien shrubs and trees on 10 hectares, and reconstruct wetlands on 10 hectares in the area of former material extraction sites.
Databases and information systems
Hungary has developed a comprehensive set of water-related information systems to inform water governance and climate adaptation planning (Table 2.6). Multiple national and sector-specific platforms track water risks, waterbody conditions, and service provision. Two core systems serve complementary roles: the National Environmental Information System (OKIR), operated by the EM, collects data on groundwater and surface water bodies, while the Water Management Information System (VIZIR), operated by the OVF, monitors real-time hydrological and meteorological parameters such as precipitation and temperature. The VIZIR also includes the Operational Water Scarcity Assessment and Forecasting System, which informs the definition of Drought Depression Index thresholds and triggers water scarcity protection levels. Additional specialised registries support administrative and sectoral functions. For example, the OVF’s Water Use Information, Control and Integrated Authority Framework (VIZEK) covers water abstraction and permitting; the National Water Utility Registry (NVNY), maintained by the MEKH, documents utility networks and service providers; and the Waters for Human Use Information System, managed by the NNGyK, ensures oversight of drinking water quality. HungaroMet operates the National Adaptation Geospatial Information System (NATéR), which enables spatially differentiated vulnerability assessments across sectors (e.g. drinking water supply, groundwater and flash floods, among others) (HungaroMet, 2024[79]). At the international level, Hungary contributes to and benefits from transboundary data-sharing platforms co-ordinated by the ICPDR, including the Danube-GIS, Danube-HIS, the Accident Emergency Warning System, and the Trans-National Monitoring Network (ICPDR, 2025[80]).
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← 1. Pursuant to Section 363 of Government Decree 257/2024. (VIII. 29.) entering into force on 1 October 2024.
← 2. Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Germany, Hungary, Moldova, Montenegro, Romania, Serbia, Slovakia, Slovenia and Ukraine. Full contracting parties are required to have at least 2 000 km² of national territory within the Danube River Basin.
← 3. The North Transdanubian Water Management Directorate for the Danube sub-catchment, the Central Tisza Region Water Management Directorate for the Tisza sub-catchment, the Southern Transdanubian Water Management Directorate for the Drava sub-catchment, and the Central Transdanubian Water Management Directorate for the Balaton sub-catchment.
← 4. As the various Operational Programmes that provide financial resources for the RBMP are comprised of both EU funds and central budget contributions, the exact share of EU funds within the RBMP budget is not disclosed or published in the RBMP. However, the general structure of these Operational Programmes suggests that around 80% of the RBMP investments come from EU funds.
← 5. A water supply unit means a water supply and distribution sewer network connected to a common water supply or distribution point, as well as its related works, which form a uniform system in terms of operation. An agricultural water supply system or irrigation system is a set of water facilities providing agricultural water services connected to a common surface water source, comprising one or more water service units.
← 6. EU cohesion policy is delivered through several funds, namely the European Regional Development Fund (ERDF), the European Social Fund Plus (ESF+), the Cohesion Fund, and the Just Transition Fund.