FOREWORD The core of the World Bank Water Resources Management Policy is a comprehensive policy framework that recogniizes appropriate management of water resources. Sound management relies, however, on large amounts of adequate and reliable information. Thus, information systems and appropriate use of information are critical for comprehensive water management. The lending program of the World Bank in water resources includes new projects with substantial components designed to help enhance

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... modernize a country's capacity to collect, process, and use the most critically important input to the process of water management, information. Evaluations of the economic value of information associated with such projects are not straightforward. This paper addresses the methodology of economic evaluation of water-related projects that create the need for a "new generation" of evaluation procedures and methods. The paper demonstrates the use of the methodology in the recently approved Mexico Water Resources Management Project. We hope this report will stimulate thought and debate about strategies that the Bank might use to develop evaluation methodologies that comport with the challenges posed by this class of projects.