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The needs for potable water constantly grow, while climate changes influence the natural precipitation. As the world population increases, the needs for potable water increase as well. Development of legal and institutional framework for water management based on the principles and in accordance with the EU requirements, primarily with the EU Water Framework Directive (2000/60/EC) as well as other EU regulations started with passing of the Law and regulations related to water in B&H. Water Framework Directive foresees protection of all water (surface and underground), river basin water management, as well as all impacts to water, achievement of good water status in certain period of time, introduction of economic analysis for water use, and more active public inclusion into decision making processes of importance for preservation of water resources. Water management includes water protection at the river basin level, use of water, protection from hazardous water impact and arrangement of water streams, while lately the introduction of economic analysis of water use has become more interesting.