
Get all the data you need about the real estate market in Cabo San Lucas
SUMMARY
Yes, it is safe to buy in Cabo with the water shortage, but only if the individual property can prove that it can keep water flowing when the wider system is under pressure.
The shortage itself is not marginal. The Cabo San Lucas aquifer carries an annual deficit of roughly 24 million cubic meters, while scheduled municipal distribution and tanker deliveries remain part of normal water management in some areas.
The biggest mistake is treating Cabo's water problem as a neighborhood-level question. Two nearby properties can have completely different levels of risk because storage, pumps, tanker access, backup power and HOA management determine what residents actually experience.
Tankers are useful as backup, but routine dependence is a warning sign. The recent closure of two unauthorized extraction points disrupted sources that had been filling about 120 tanker trucks per day, showing how exposed the system can become when outside supply is less secure than it looks.
The second desalination plant should materially improve Cabo's position. Its planned 250-liter-per-second capacity equals about 21.6 million liters per day, but it is still infrastructure under construction rather than water already available inside a property.
Leak reduction may be almost as important as adding new supply. In Cangrejos, hydraulic efficiency reportedly rose from 34% to 71%, showing how much usable water can be recovered simply by fixing a weak distribution network.
For buyers, days of water autonomy are more useful than the size of a cistern on its own. Storage only becomes meaningful once it is compared with realistic consumption during periods of high occupancy.
Water risk can also hide inside ownership costs. A building may never visibly run dry while owners quietly pay for frequent tanker deliveries, pump repairs, filtration, electricity or private desalination through rising HOA expenses.
Pre-construction deserves more scrutiny because buyers are underwriting an engineering plan rather than an operating history. Established buildings can show actual tanker bills, water interruptions, maintenance records and how their systems performed during difficult periods.
The best Cabo properties are increasingly the ones with several layers of protection: a documented primary source, multiple days of storage, dependable backup supply, redundant pumps, emergency power and competent management. Water scarcity does not make Cabo unbuyable; it makes weak properties easier to spot.
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How bad is the Cabo San Lucas water shortage right now?
Cabo San Lucas currently has a serious water shortage, and the official groundwater numbers leave very little room to argue otherwise.
Conagua says the Cabo San Lucas aquifer is running an annual deficit of roughly 24 million cubic meters. That figure goes deeper than residents occasionally waiting longer for municipal water: groundwater commitments and extraction have moved far beyond what the aquifer can comfortably support.
The pressure became unusually visible when Conagua closed two unauthorized extraction points in Cabo San Lucas. Inspectors found that each was pumping around 16 liters per second. Together, those wells had been supplying about 120 tanker trucks per day, equivalent to roughly 8,400 cubic meters of water per week. One was connected to Acueducto III, one of the important sources feeding the city.
At the same time, OOMSAPAS still manages parts of Los Cabos through tandeo, or scheduled water distribution, and uses tanker deliveries when some neighborhoods go too long without service. The severity varies by area, but Cabo's shortage remains an operating reality today.
| Indicator | Latest useful evidence | Scale | What it tells us |
|---|---|---|---|
| Cabo San Lucas aquifer balance | About -24 million m³/year | Very large deficit | Groundwater pressure is structural |
| Illegal extraction points closed by Conagua | 2 | About 32 L/s combined | Unregulated pumping was material |
| Tankers supplied from those wells | About 120/day | Roughly 8,400 m³/week | Tankers are a meaningful part of Cabo's water system |
| Municipal response | Tandeo and emergency deliveries | Area dependent | Some residents still face intermittent supply |
Is Cabo growing faster than its water supply?
Cabo is still adding enough tourism and development that new water infrastructure has to chase a moving target.
The Los Cabos Tourism Board says the destination received nearly 3.8 million visitors in 2025, almost 130% more than a decade earlier. Hotel inventory has climbed from about 15,000 rooms in 2016 to more than 22,000 today.
Every new hotel room, condo project, restaurant and full-time resident adds demand to a region whose groundwater is already under heavy stress.
We can see the scale on the municipal network too. OOMSAPAS recently reported more than 53,000 users in its Cabo San Lucas database, while its MIG modernization program has already worked across more than 41,000 households and affected more than 176,000 residents.
Infrastructure is expanding at the same time, so Cabo is hardly standing still. But a new desalination plant cannot be judged against yesterday's Cabo. It has to serve a destination that keeps getting larger.
| Demand indicator | Earlier level | Latest reported level | Change |
|---|---|---|---|
| Annual Los Cabos visitors | About 1.65 million a decade ago | Nearly 3.8 million | Nearly +130% |
| Hotel inventory | About 15,000 rooms in 2016 | More than 22,000 | Roughly +47% |
| Registered Cabo San Lucas water users | — | More than 53,000 | Large municipal network |
| Households reached by MIG | — | More than 41,000 | City-scale modernization |
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Why can two Cabo properties have completely different water problems?
Water risk in Cabo can change dramatically from one building to the next because municipal supply is only one part of the system that actually keeps faucets running.
A condo may receive OOMSAPAS water intermittently but store enough in a large underground cistern to cover several days. Another building may compensate with tanker deliveries. Some high-end communities have private desalination or more independent water infrastructure.
Residents can therefore live through the same municipal shortage very differently.
A building with good storage can wait out a temporary interruption without guests noticing. A nearby condo with undersized tanks may need emergency tanker deliveries almost immediately. A villa with its own cistern gives the owner direct control, while a condo owner depends heavily on the HOA maintaining shared pumps, tanks and contracts.
So when we evaluate a Cabo purchase, the building's water system deserves nearly as much attention as the neighborhood.
Is Cabo San Lucas too dependent on water tankers?
Cabo still relies enough on tanker trucks that frequent tanker use should make a property buyer ask harder questions.
The clearest recent example came from Conagua's closure of the two unauthorized extraction points mentioned above. Those sources had been filling around 120 pipas per day. That is too much volume to dismiss as an occasional emergency business.
OOMSAPAS has also used municipal tanker programs when areas experience long gaps in regular supply. Tankers give Cabo an important safety valve when the network cannot deliver enough water.
For an individual property, though, there is a big difference between calling a tanker occasionally and needing one every few days just to operate normally.
Routine tanker dependence exposes owners to delivery delays, rising costs and competition for trucks during the exact periods when shortages are affecting many properties at once. We would be much more comfortable with a building where tankers are the backup layer than one where they have quietly become the primary water source.
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Will Cabo's new desalination plant solve the water shortage?
Cabo's second desalination plant should make the water situation meaningfully better, but the project is still under construction and its capacity will not make water risk disappear.
OOMSAPAS recently reported that Desalination Plant II had reached 73% completion. The project is expected to add 250 liters per second of potable water to Cabo San Lucas, with investment of roughly MXN 1.8 billion.
At full continuous output, 250 liters per second works out to about 21.6 million liters per day, or roughly 7.9 million cubic meters per year.
That is a substantial addition. For scale, annual production at full capacity would equal about one-third of the roughly 24 million cubic meter annual aquifer deficit currently reported by Conagua. These figures measure different things—the aquifer deficit concerns groundwater while the plant introduces seawater into the municipal system—but the comparison shows how large the project is.
It also shows why one plant cannot carry the whole story.
Cabo continues growing, distribution losses remain a problem and the new plant still has to be completed, commissioned and connected successfully to the network. A buyer today should treat the project as a major improvement underway, rather than water that is already arriving at the building.
| Desalination Plant II measure | Approximate figure | What it means |
|---|---|---|
| Reported construction progress | 73% | Advanced, but not yet finished |
| Planned production | 250 L/s | Major new municipal source |
| Daily production at full output | 21.6 million liters | 21,600 m³/day |
| Theoretical annual production | 7.9 million m³ | Large addition to city supply |
| Reported investment | About MXN 1.8 billion | Major infrastructure commitment |
| Aquifer deficit for comparison | About 24 million m³/year | Water stress remains much larger than one project |
Is Cabo actually fixing all the water it loses through leaks?
Cabo is getting noticeably better at recovering water that was previously lost, and some of the results are much larger than we expected.
OOMSAPAS and Aqualia's MIG program provides the strongest example. In Cabo San Lucas's Cangrejos sector, hydraulic efficiency increased from 34% to 71% after crews worked on 11.2 kilometers of pipes and more than 1,000 household connections.
That work recovered 6.22 liters per second, which OOMSAPAS equated to the consumption of around 1,000 households and 4,133 people.
The program has since grown much wider. OOMSAPAS reported more than 3,000 household connections replaced, tens of thousands of meters changed and hundreds of hidden leaks repaired. More recently, the system added 35 large network meters and 42 telemetry units while mapping more than 592 kilometers of water network.
This is one of the more encouraging parts of Cabo's water story. Producing additional desalinated water is only half the job. Keeping more of the water already entering the network can add supply without finding another source.
The Cangrejos improvement cannot simply be copied across every neighborhood, but moving from 34% to 71% shows how bad some local inefficiencies were and how much can be recovered when they are fixed.
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Can Cabo desalination still fail even though the ocean never runs out?
Cabo desalination gives the city a dependable raw water source, but the plants still depend on electricity, pumps, membranes and distribution infrastructure working properly.
Seawater availability is obviously not the constraint. Turning that seawater into drinking water requires reverse-osmosis equipment operating under high pressure, and the finished water still has to travel through pipes and pumping stations before it reaches homes.
The same problem exists inside condo buildings. A property can have plenty of water stored underground and still lose service on upper floors if the pumps stop and there is no working backup power.
This is especially worth checking in taller buildings, where gravity does less of the work.
For that reason, a development that advertises desalinated water should still be able to answer several practical questions: how much water it can store, whether its pumps have redundancy, whether emergency power runs those pumps and what supply replaces desalination if the plant goes offline.
Desalination improves Cabo's water security a lot. It does not eliminate mechanical failure.
How much water storage should a Cabo property have?
A Cabo property should store enough water to survive several days of disrupted supply without immediately calling an emergency tanker.
There is no useful universal number because a 100,000-liter tank can be generous for one property and inadequate for another. Building size, occupancy, pools, landscaping, laundry and common areas all change daily consumption.
The useful number is days of autonomy:
usable stored water ÷ realistic daily consumption = days the property can operate without a refill.
We would calculate that using high occupancy rather than the building's quietest weeks. Vacation properties can go from sparsely occupied to nearly full very quickly.
This is where vague sales language becomes dangerous. “The development has a large cistern” tells us almost nothing. “The development stores 180,000 liters and uses around 45,000 liters on a peak day” tells us that the building has roughly four days of protection.
That is the kind of answer we want.
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Are Cabo condos safer than houses during a water shortage?
A well-run Cabo condo can handle water shortages extremely well, while a badly run condo leaves owners dependent on decisions they cannot control.
Condos have one big advantage: residents can share infrastructure that would be expensive for each household to build separately. Large cisterns, redundant pumps, generators, tanker contracts and professional maintenance can create a strong system.
The weakness is collective management.
If the HOA underfunds maintenance, ignores a failing pump or waits until the cistern is nearly empty before ordering water, an individual owner cannot simply fix the entire building.
A standalone house gives us more control. We can choose the cistern size, install a tinaco, upgrade pumps, add filtration and buy backup electricity. We also pay for all of it and have to make sure someone maintains the equipment when we are away.
For overseas owners, HOA quality can therefore matter as much as whether the property is a condo or a house.
Can Cabo's water shortage quietly make HOA fees more expensive?
Yes. A Cabo condo can avoid actual water outages and still pass the cost of the shortage to owners through higher operating expenses.
More tanker deliveries cost money. Pumps need electricity and eventually replacement. Cisterns have to be cleaned and repaired. Filtration systems consume parts. Private desalination requires energy, membranes, maintenance and trained operators.
The question is whether the HOA has already planned for those expenses.
We would look at several years of financial statements and compare water-related costs. Frequent tanker invoices are particularly useful because they tell us something sales agents often do not: how much outside water the property really needs.
Reserve funding matters too. A cheap HOA fee can look attractive until a major pump, storage tank or water-treatment system fails and owners receive a special assessment.
In Cabo, a slightly higher HOA fee backed by strong infrastructure can easily be the cheaper property to own over time.
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Does private desalination make a Cabo development safe from water shortages?
Private desalination can make a Cabo development much safer, but we would still want to see what happens when that system stops working.
Some luxury resort and residential communities around Los Cabos have invested in more independent water infrastructure because municipal scarcity has existed for years. That reduces their exposure to tandeo and the availability of tanker trucks.
The strongest systems combine several layers. They can produce water themselves, store enough to cover interruptions and switch to another source when necessary.
A community that depends entirely on one private desalination plant has concentrated the risk in a different place. Electricity failure, intake problems, damaged equipment or membrane maintenance can still interrupt production.
We would therefore ask how much of the development's normal demand the plant can actually produce, whether it has operated successfully at peak occupancy, who maintains it and what backup source exists.
“Private desalination” is useful information. It should never be the end of the conversation.
Is buying a new or pre-construction Cabo condo riskier for water?
Pre-construction Cabo property carries more water uncertainty because we are buying an engineering plan before seeing how the system performs with a full building.
Developers can obtain water-service feasibility approval through OOMSAPAS, and buyers should ask to see the relevant documentation. But feasibility and real-world reliability are different tests.
For a project under construction, we want the developer to identify the actual source of water, storage capacity, expected peak consumption, tanker access, pump redundancy and backup-power setup. If private desalination is planned, we need to know whether it already exists and who will operate it.
Statements about future municipal improvements deserve extra caution. Desalination Plant II is now 73% complete, according to OOMSAPAS, which is much more concrete than a project sitting on a drawing board. It still should not be counted as water already available inside a condo we are buying today.
Established properties have a useful advantage here: history. We can inspect water bills, tanker expenses, HOA minutes and ask residents what happened during previous supply interruptions.
A ten-year-old building that has already handled difficult periods can sometimes be easier to underwrite than a brand-new project with nicer equipment but no operating record.
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Could Cabo's water shortage eventually hurt property prices?
Cabo's water shortage is more likely to punish weak properties than crash the entire real estate market.
Los Cabos managed to attract nearly 3.8 million visitors in 2025 while hotel inventory grew beyond 22,000 rooms and average hotel rates remained around US$440. Long-running water stress clearly has not stopped affluent travelers, hotel groups and property buyers from spending money in the destination.
We should still expect water security to influence pricing more over time.
Imagine two similar condos selling at similar prices. One can document four or five days of storage, predictable water expenses and reliable backup supply. The other routinely needs emergency tankers and occasionally asks residents to conserve water.
Once buyers understand that difference, the second property deserves a discount.
Improving public infrastructure should help reduce the overall risk. The new desalination capacity and the MIG program are attacking the problem from opposite sides: producing additional water while losing less of the existing supply.
The effect on real estate should therefore become increasingly property-specific. Strong water infrastructure can protect value; weak infrastructure gives future buyers an obvious reason to negotiate.
Which Cabo properties have the highest water risk today?
The highest-risk Cabo properties are the ones that combine unreliable supply, little storage and no dependable backup.
Frequent routine tanker deliveries would concern us. So would an HOA that cannot state its usable cistern capacity, a building dependent on one pump, a project expecting unfinished infrastructure to solve its supply problem, or a property drawing groundwater without clear documentation of the legal source.
Density also changes the calculation. A large building with inadequate storage can burn through its reserve very quickly when occupancy peaks.
We are much more comfortable when the property has layers: a known primary source, several days of stored water, an established way to buy backup water, redundant pumping equipment and enough emergency power to keep the system operating.
| Property setup | Water risk | Why |
|---|---|---|
| Municipal supply with very little storage | High | Residents feel interruptions quickly |
| Municipal supply with several days of storage | Moderate | Short gaps can be absorbed |
| Frequent routine tanker dependence | Moderate to high | Cost and availability can worsen together |
| Private desalination with little redundancy | Moderate | Strong source, but concentrated technical risk |
| Desalination + storage + secondary supply | Lower | Several independent layers protect owners |
| Pre-construction relying on future infrastructure | High | Reliability has not been demonstrated |
| Established building with documented operating history | Lower | Past performance can be checked |
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What water documents should we check before buying in Cabo?
A Cabo buyer should ask for enough water records to verify how the property actually operates, instead of relying on the seller saying that water has “never been a problem.”
For an existing condo, we would review HOA financial statements, meeting minutes, water expenses, tanker invoices, cistern cleaning records and pump-maintenance history.
Then we would identify the source itself. Is the property supplied by OOMSAPAS, a legal private well, desalination, tankers or a combination?
That question has become more important after Conagua's recent enforcement action against unauthorized extraction in Cabo San Lucas. As seen above, those two wells alone had been filling around 120 tanker trucks per day before they were closed. Water coming out of a pipe or arriving in a truck does not tell us whether that source is legally secure.
For a new development, we would also request water-service feasibility documentation and compare the approved plan with what the sales team is promising.
Finally, we would ask management for the property's worst recent water interruption: how long normal supply stopped, whether the cistern emptied, how much backup water was purchased and whether residents actually lost service.
That history is often more valuable than another brochure.
What should we ask a Cabo HOA about water before buying?
A Cabo HOA should be able to answer basic water questions with numbers, dates and records; vague reassurance is a bad sign.
The first figure we want is usable storage capacity. Then we want estimated consumption at high occupancy so we can turn that figure into days of autonomy.
We would also ask how many tanker deliveries were purchased during the last two years and how those purchases have changed. A building ordering a handful of emergency trucks after unusual disruptions is very different from one quietly bringing water in every week.
Pump redundancy, generator coverage and maintenance history complete the picture.
| Question for the Cabo HOA | Reassuring answer | Warning sign | What we learn |
|---|---|---|---|
| How much usable water can the building store? | Exact capacity in liters | “A lot” | Actual reserve size |
| How long does that last at high occupancy? | Calculated number of days | Unknown | Real autonomy |
| How many tanker loads were bought recently? | Records with dates and costs | No records | Dependence on outside supply |
| Is there a backup water pump? | Yes, regularly tested | Single pump only | Mechanical redundancy |
| Does backup power run the pumps? | Yes | No or unknown | Whether stored water remains usable |
| When was the cistern last serviced? | Scheduled maintenance | Reactive maintenance | Reliability and water quality |
| What was the longest recent supply interruption? | Specific answer | “We never really have problems” | Proven performance |
| Is every water source documented? | Permits/contracts available | Unclear | Legal durability |
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Should we avoid Cabo neighborhoods that still use tandeo?
Tandeo should make us inspect a Cabo property more carefully, but scheduled municipal water alone does not make a neighborhood unbuyable.
OOMSAPAS is still working to reduce dependence on scheduled distribution. More recently, the MIG program divided parts of Cabo San Lucas into independently controlled hydraulic sectors in Cangrejos, Centro, Venados and Ejidal, allowing operators to manage pressure, leaks and supply more precisely.
Conditions can therefore improve street by street as the network changes.
This is why generic lists of “Cabo neighborhoods with water problems” can mislead buyers. A building inside an intermittently supplied area may provide uninterrupted service because its cistern bridges the gaps. Another property in a better-supplied zone can still struggle because its own storage and pumps are poor.
We would ask residents, building employees and the HOA separately how often municipal water arrives and whether the property itself has run dry.
For a buyer, the experience inside the building matters more than the label attached to the neighborhood.
Is Cabo's water shortage a bigger problem for Airbnb investors?
Cabo's water shortage creates more financial risk for an Airbnb than for a homeowner who understands local water interruptions and can adapt.
Vacation guests paying high nightly rates expect showers, toilets and running water to work without explanation. A resident may understand that municipal water arrived late but the cistern will cover the gap. A tourist usually does not care why the problem happened.
Short-term rentals can also use a lot of water when occupancy is high. Several guests showering, cleaners washing linens, pools operating and landscaping running can push consumption well beyond what a couple living permanently in the same unit would use.
One severe interruption can then create refunds, emergency tanker bills and poor reviews at the same time.
For an Airbnb investment, we would want more storage margin and a stronger backup plan than we would require for our own occasional-use condo.
If a property manager cannot explain what happens when the municipal supply disappears for several days during a fully booked week, we would not assume the investment is ready for short-term rentals.
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Is Cabo water risk acceptable for a ten-year property investment?
A ten-year Cabo purchase can still make sense, but we would assume water stress remains part of the market throughout the holding period.
The direction of infrastructure is encouraging. Cabo is adding another 250 liters per second of desalination capacity, OOMSAPAS is sectorizing the distribution network and the MIG program has shown that major leakage reductions are possible.
Demand is moving upward at the same time.
That combination means Cabo will probably keep spending heavily on desalination, distribution, reuse, storage and efficiency. We would not base a ten-year investment on the idea that scarcity disappears completely.
A more sensible test is whether the property remains comfortable and financially manageable while the wider city continues dealing with water constraints.
If the answer is yes, future infrastructure improvements become upside.
So, is it safe to buy in Cabo with the water shortage?
Yes, buying in Cabo is still safe enough for us to consider today, but we would reject any property that cannot prove how it keeps water flowing during a shortage.
The underlying problem is real. Conagua currently puts the Cabo San Lucas aquifer deficit at roughly 24 million cubic meters per year, municipal tandeo still exists and tanker trucks continue to fill gaps in the supply system.
The infrastructure response is also becoming much more concrete. Desalination Plant II has reached 73% completion and is designed to add 250 liters per second. The MIG program has already pushed hydraulic efficiency in Cangrejos from 34% to 71% and is now working across a much larger part of Cabo San Lucas.
Those improvements do not give every property the same level of protection. Water storage, backup supply, pumps, emergency electricity and HOA management determine whether a citywide shortage becomes an actual problem inside the unit.
We would comfortably consider a property that can document several days of storage, a reliable primary source, backup water, properly maintained pumps and a financially competent HOA.
We would walk away from one that routinely survives on emergency tanker deliveries, cannot calculate its days of stored water, relies on unclear water rights or needs an unfinished public project to make the numbers work.
Cabo's water shortage does not make Cabo unbuyable. It makes weak properties much easier to identify.
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OUR METHODOLOGY
This analysis tests whether it is safe to buy property in Cabo while the city continues dealing with a serious water shortage. We broke the question into the parts that actually affect a buyer: underlying groundwater stress, demand growth, municipal supply, desalination, distribution losses, tanker dependence, property-level storage, backup systems and operating history.
We prioritized the freshest measurable information available and gave the greatest weight to official or first-hand sources. The groundwater discussion is anchored in CONAGUA data and the official federal groundwater-availability calculation published through the Diario Oficial de la Federación, including the roughly 24 million cubic meter annual deficit reported for the Cabo San Lucas aquifer.
Municipal operating conditions were assessed using Los Cabos and OOMSAPAS reporting on tandeo, emergency tanker deliveries, network changes and the second desalination plant. We treat Desalination Plant II's reported 73% construction progress and planned 250-liter-per-second capacity as infrastructure underway, not as water already available to a property today.
Demand pressure was assessed using Los Cabos Tourism Board data on visitor growth and hotel inventory, together with municipal information on the size of the Cabo San Lucas water network. We use those figures to understand the scale of the system that new water infrastructure has to serve, rather than assuming future supply can be judged against Cabo's historical population or tourism base.
For network efficiency, we used OOMSAPAS, the Los Cabos First Government Report and Aqualia's reporting on the MIG modernization program. The Cangrejos result—hydraulic efficiency rising from 34% to 71% and 6.22 liters per second being recovered—is treated as evidence that major local leakage reductions are possible, not as a citywide efficiency rate.
Property-level conclusions are based on how the wider water system translates into actual operating risk. We therefore distinguish between municipal scarcity and a building's resilience, looking at storage, realistic peak consumption, tanker use, pump redundancy, backup power, maintenance records, water-source documentation and the HOA's ability to manage the system.
We also used official Los Cabos development requirements and OOMSAPAS feasibility procedures when assessing new and pre-construction properties. For desalination mechanics and technical failure points, we relied on the U.S. Department of Energy and U.S. Bureau of Reclamation, while SEMARNAT environmental-review records provide first-hand examples of Los Cabos developments incorporating private desalination and related water infrastructure.
Key sources used for this analysis include: CONAGUA on the Cabo San Lucas aquifer and unauthorized extraction points, the Diario Oficial de la Federación groundwater-availability calculation, CONAGUA's technical study of aquifer 0317, the Los Cabos Tourism Board's industry data, Los Cabos on Desalination Plant II, OOMSAPAS on emergency water distribution, the Los Cabos First Government Report on the MIG program, Aqualia on Cabo San Lucas network modernization, Los Cabos development and water-feasibility requirements, the U.S. Department of Energy on desalination fundamentals, the U.S. Bureau of Reclamation on reverse-osmosis systems, and SEMARNAT environmental-review records covering private water infrastructure in Los Cabos.
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