The overall goal of this report is toassist water resources and environment professionals withinthe Bank and client countries to use Strategic environmentalassessment (SEAs) to effectively implement the principles ofIntegrated water resources management (IWRM). It (a)delineates environmental issues related IWRM; (b) identifiesopportunities for SEAs to addressing these environmentalissues; (c) uses the literature and ten Bank and non-Bankcase studies to identify procedural and substantive factorsand institutional drivers that lead to effective SEAs in thewater sector at the policy, strategy, program, and planlevels; (d) reviews four national and state water policiesto understand the inclusions of environment; (e) observesthe introduction of SEAs in a developing country as anin-depth pilot study to identify practical issues arisingfrom the introduction of SEAs for the water sector; and (f)recommends how the Bank can expand the use of SEAs toimprove the integration of environmental issues in waterresources investments.