Water Funds are independent, multi-stakeholder management entities that aim at long-term ecosystem conservation.  The Funds attract investment in natural capital within a framework of long-term financial sustainability to help secure water quality and supply, as well as reducing disaster risks by regulating water flows, controlling erosion and reducing sediments.

They are an initiative achieved by the Latin American Water Funds Partnership, formed by TNC, Fundacion FEMSA, Inter-American Development Bank (IDB) and the Global Environmental Facility (GEF).