This note provides guidance on how toensure that the impact of agricultural investments on waterresources is effectively measured, monitored, and regulated.Water is essential to agricultural production andprocessing, and has been a driving factor in private andpublic decisions on where to locate investments. Despiteglobal concerns about water scarcity and pollution, thewater use of agricultural investments is in many cases notrigorously measured, monitored, or regulated. Whereregulations exist, enforcement is often weak. Some investorsimprove local water access with community developmentprograms, but such schemes require consultation and careful management.