This document discusses using economic and financial instruments for integrated water resource management (IWRM) to improve efficiency, equity, and sustainability. It addresses major issues in water management like achieving development goals and climate change adaptation. Economic principles like rational resource use, cost recovery, and polluter pays are important to consider. Economic instruments like taxes and subsidies can be applied. Financial instruments may also be needed to fund investments and operations. IWRM aims to achieve efficiency, equity for vulnerable groups, and long-term environmental, social, and economic sustainability of water services.