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If you’re planning to buy a lot and build a house in Costa Rica, your first challenge may be making sure it has water.
Without an official determination that the property has access to legal water, the government will not issue a permit allowing you to build. And this is something you need to determine long before you buy.
Costa Rica is blessed by abundant rainfall that keeps the forest green, sustains its world-famous biodiversity, and creates splendid waterfalls and fast rivers. Some of this water runs into the ocean, but much of it seeps into the ground into aquifers and subterranean water reservoirs that occur naturally in water-bearing rock, gravel, and sand.
But despite the abundance of rain here in the rainforest, capturing enough of this water for human consumption in every corner of Costa Rica is a tricky business.
Our real estate staff recently attended a seminar on this issue by Quatro Legal, a Costa Rican law firm that specializes in helping property buyers perform due diligence on this very issue. We found their summation of complicated issues easy to follow, and we’d like to pass on some of what they shared.
AyA vs. Asada
In most cities and larger towns, municipal water is provided by the AyA, the Instituto Costarricense de Acueductos y Alcantarillados. (“Acueductos” are aqueducts and “alcantarillados” are sewer systems.)
Larger towns and cities will likely have a more developed infrastructure for water delivery overseen by this national agency. It’s responsible for policy, direction, planning, financing and development of drinking water supply and sewage treatment.
Smaller towns and rural areas are often beyond the reach of the AyA system and are served by local entities called “Asadas.” These are public-private partnerships between the AyA and the local residents who form these associations. Asadas are nonprofit organizations that operate under a delegation agreement with AyA. There are around 1,500 Asadas around the country that provide water from aquifers, wells or AyA supply.
Wherever you want to build, you’ll need a “water letter” stating that the property has an adequate water supply. You’ll need to apply for one of these from either the AyA or a local Asada, depending on which one serves your area.
Not all water letters are created equal, and it’s important to understand the different types. Water letters are legally binding documents issued by the AyA or Asada that address the technical and legal capacity to provide drinking water and sewage treatment to a specific property. They are generally valid for 12 months and can be renewed after that.
Here are the different types of water letters:
#1
Water Service Availability Letter
(“Disponibilidad de servicio para abastecimiento de agua,” or “carta de disponibilidad de agua”)
This confirms the real and current (not future or potential) infrastructure and hydric capacity to provide water service. This is the “ideal” water letter, indicating that the authorized water is allocated to the property owner and is removed from the general water flow. You need one of these to get a permit to build. For subdivided properties, each lot within the subdivision needs its own water letter.
#2
Hydric Capacity Letter
This confirms the existence of water resources and the technical and operational feasibility of producing potable water. But it doesn’t allocate or reserve any specific flow for the owner, and this letter can’t be used to obtain a building permit.
However, this type of letter can be useful for long-term investments, as it confirms the presence of water and infrastructure and suggests that the local water agency could be providing Water Service Availability letters in the future.
#3
Hydric Capacity Certificate
(“Constancia de capacidad hídrica”)
This letter confirms that the water capacity exists to meet the demands of a specific real estate project — provided the owner builds the infrastructure.
This document is sometimes confused with the Water Service Availability letter required for building permits, but it’s impossible to issue that “ideal” letter because the infrastructure does not yet exist. However, authorized water is allocated to the property owner and removed from the general flow.
This letter allows property owners to apply for a permit to build the water infrastructure. They can also apply simultaneously for a permit to build the actual property, but this can’t happen until the water infrastructure is in place.
#4
Hydraulic Capacity
(“Capacidad hidráulica”)
This letter certifies the existence of infrastructure to transport water, but it does not confirm the existence of water. This letter has no real value.
#5
Certificate of Service Availability
(“Constancia de servicio existente”)
This letter certifies the current existence of potable water and/or sewer services at a specific property. This is recorded in the database of the AyA/Asada, along with the flow allocation, nature and use of the water.
This letter can be used to obtain a building permit, as it confirms that working water already exists on the property.
Bear in mind that people selling property may tell you they already have a “water letter,” without specifying which kind. It’s important to determine exactly what kind of water letter it is so there are no surprises later.
Note also that some Asadas use different names for different types of letters, so it’s important to focus on the content of the letter and not just its name. You’ll want to find a lawyer or other expert to review the letter and determine exactly what it says.
Types of Wells
Rural property owners often need to dig wells, and there are two types of these.
#1
Concession Wells
These are built with industrial machinery, typically with an 8-inch diameter and reaching depths of 14 meters (46 feet) or more.
Approval is required both to drill the well and to use the water obtained.
#2
Artisan Wells
These wells are dug manually with tools like picks and shovels, with a diameter of at least 1 meter.
These hand-dug wells are for single-family homes or irrigation for up to half a hectare of land. No permits are required to dig these, and since 2022, artisan wells are not required to be registered with the government. They are required to have a 40-meter setback from wastewater treatment systems.
Due Diligence
If you’re looking to buy property in Costa Rica, you should always seek legal advice from experts who can perform the necessary due diligence. This includes checking on titles, land surveys, wells, water letters and more. Be sure you understand the actual water status of any property before you buy.
If you have questions about how to proceed, contact the real estate advisor at Special Places of Costa Rica, Erica Kok, at erica@crvr.net.
